The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved investment of Rs.26,069.50 crore for construction of Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh. The estimated completion period for the project is 96 months.

The project with an installed capacity of 1720 MW (8 x 210 MW & 1 x 40 MW) is expected to generate 6870 MU of energy. The power generated from the Project will strengthen power supply position in the state of Arunachal Pradesh, support in peak demand management, contribute to national grid balancing and will provide flood moderation benefit in the Brahmaputra valley. In addition to Kamala HEP, other hydropower projects—Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW) is under construction, and Etalin (3097 MW) is planned for development by NHPC Limited in Arunachal Pradesh.

The Kamala HEP will be implemented through a Joint Venture Company between NHPC Limited and the Govt. of Arunachal Pradesh. Government of India shall extend Rs.4743.98 crore as budgetary support towards flood moderation component and Rs.1340 crore as budgetary support for enabling infrastructure viz. construction of roads, bridges and associated transmission system besides Central Financial Assistance of Rs.750 crore towards the equity share of the State.

The State will receive 12% free power and an additional 1% earmarked for the Local Area Development Fund (LADF), along with significant infrastructure development and socio-economic benefits for the region.

There will be significant improvement in the infrastructure in Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh, including the development of around 196 kms of roads and bridges, for the project which shall be mostly available for local use. The district will also benefit from the construction of essential infrastructure such as hospitals, schools, marketplaces etc. to be financed from dedicated project funds of Rs.8 crore. Local populace shall also be benefitted from compensations, employment and CSR activities.

Beside Kamala HEP, three major hydropower projects—Subansiri Lower (2000 MW), Dibang Multipurpose (2880 MW), and Etalin (3097 MW)—are being developed by NHPC Limited in Arunachal Pradesh and Assam. Subansiri Lower HEP (2000 MW) is at an advanced stage with 750 MW already commissioned and remaining capacity is expected to be commissioned by December 2026, while all projects will provide 12% free power to the host states and support local development through a Local Area Development Fund equivalent to 1% of project revenue.

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India-Australia Joint Statement on Energy Security
July 09, 2026

Australia and India are Comprehensive Strategic Partners with a common vision for a free, open and prosperous Indo-Pacific region.

Australia and India share deep concern over the situation in the Middle East and its consequences for our region, including the prolonged impact of disruptions on energy, resources and other important commodities’ supply chains and prices. Amid this disruption, we reaffirm our shared commitment to open markets and rules-based trade, principles that underpin our prosperity and economic security.

Australia and India recognise the central role of trusted private sector partnerships and strategic investments to sustainable and reliable energy flows. In parallel, and in support of enhanced private sector engagement, both countries are committed to advancing bilateral energy trade and investment cooperation through the Economic Cooperation and Trade Agreement (ECTA), the ongoing work toward a Comprehensive Economic Cooperation Agreement (CECA), and other relevant bilateral frameworks. Australia and India also reiterate the importance of capacity-building and knowledge exchange in the energy sector.

Recognising Australia’s role as an important supplier of liquefied natural gas to India and India's role as an important supplier of liquid fuels and other downstream products to Australia, Australia and India commit to support the continued flow of energy products and further enhance the energy trade between our two countries. Australia and India also reiterate the importance of encouraging investment opportunities across the energy value chain.

Australia and India have finalised the administrative arrangements necessary to enable the export of Australian uranium to India for exclusively peaceful purposes and under International Atomic Energy Agency (IAEA) safeguards, as provided for under the Australia-India Nuclear Cooperation Agreement (2015).

Australia and India are committed to working together to strengthen energy supply chain resilience, including through deepening regional cooperation, accelerating the energy transition, promoting the uptake of renewable energy resources and upholding open trade arrangements for energy and liquid fuels. Both countries recognise that increasing electrification of respective energy systems will be a valuable source of energy security into the future.

Australia and India recognise our shared commitment to resilient trade and markets in energy extends to the region. Both countries acknowledge the specific energy resource security vulnerabilities for Pacific Island Countries and the importance of energy resource supply to their resilience and economic prosperity.

Against this backdrop, Australia and India reaffirm our commitment to working together to strengthen energy security, including maintaining a stable, secure and reliable supply of energy products, such as coal, diesel, other liquid fuels and natural gas. Furthermore, both countries reaffirmed their commitment to accelerating energy transition and strengthening cooperation on low carbon fuels. In this context, Australia noted India’s initiative of Global Biofuels Alliance (GBA).

Australia and India call on regional partners to join in ensuring global energy resource supply chains are kept open for the benefit of the security and prosperity of our peoples.