The Union Environment Ministry has granted environmental clearance for the 1,200 MW Kalai II hydropower project in Arunachal Pradesh’s Anjaw district, a development expected to bolster energy security for India’s Northeast while raising questions about local forest loss and regulatory approvals.
Arunachal hydel project to boost regional energy security
The Kalai II project, located on the Lohit river close to the China border, will be developed by THDC India Limited. The run-of-river scheme is estimated at Rs 14,176.26 crore and will generate power by diverting a portion of the river flow through turbines rather than creating a large reservoir. Proponents say this design reduces the need for extensive inundation and lowers some environmental impacts compared with large storage dams.
Authorities have approved the project subject to conditions set out by the expert appraisal committee of the Environment Ministry. Construction is expected to take 78 months. Major civil works will include roads, bridges and buildings at the construction stage, with officials noting that these facilities are intended to deliver local benefits through improved connectivity and employment opportunities.
The project requires the diversion of 869 hectares of forest land and must still obtain forest clearance before proceeding. The committee’s minutes record that no national park, wildlife sanctuary, biosphere reserve, tiger or elephant reserve or designated wildlife corridor lies within 10 kilometres of the construction site. Nonetheless, the clearance package includes a Rs 1 crore conservation plan intended for habitat protection, anti-poaching measures and law enforcement support in the area.
The Lohit river rises in eastern Tibet and enters India through the Kibitho area of Arunachal Pradesh. Its transboundary origins have been noted in past assessments of hydropower development on the river system. Project documents stress that a run-of-river configuration will limit reservoir-driven displacement and ecological disturbance, though diversion of forest land and construction-phase impacts remain material considerations.
Social and health provisions are part of the project commitments. The developer has proposed building two healthcare facilities and appointing adequate medical staff, and the infrastructure work during construction is expected to create employment for local communities. In 2023 the central and state governments pledged to revive and execute a dozen stalled hydropower projects in Arunachal Pradesh, and Kalai II forms part of that broader drive to unlock the region’s power potential.
Environmentalists and local stakeholders will continue to watch the project closely as it moves to the forest clearances stage. Key concerns include the loss of forestland, potential effects on river ecology and the adequacy of compensation and rehabilitation where communities are affected. The expert appraisal committee has framed mitigation measures and a conservation plan; implementation and monitoring will determine how effectively those measures address local ecological and social risks.
For policymakers, the Kalai II clearance highlights the trade-offs involved in expanding hydropower capacity in a strategically sensitive border region. The project promises significant generating capacity and improved infrastructure for the Northeast, but it will proceed only if further statutory approvals are secured and if mitigation commitments are met during the lengthy construction period.
Key Takeaways:
- Union Environment Ministry has granted clearance for the 1,200 MW Kalai II Arunachal hydel project on the Lohit river.
- The run-of-river scheme, developed by THDC India Limited, aims to strengthen energy security in the Northeast while requiring 869 hectares of forest diversion.
- Construction is slated for 78 months and will include roads, bridges and two healthcare facilities to benefit local communities.
- The project still requires forest clearance and includes a Rs 1 crore conservation plan to address habitat protection and anti-poaching measures.

















