NHPC Etalin project: ₹30,000 crore plan in 2026

What NHPC is planning in Arunachal Pradesh

NHPC Ltd is firming up an investment proposal for the Etalin hydropower project in Arunachal Pradesh, with an envisaged investment of around ₹30,000 crore, according to people close to the development. The project is described as a mega 3,000-megawatt plant. In an emailed response to The Economic Times, NHPC said the signing of a memorandum of agreement (MoA) with Arunachal Pradesh is underway, and the project proposal is under approval.

Etalin is one of the largest projects in a cluster of big hydropower developments in the Northeast that are at different stages of allotment, construction, and approvals. The state has also signed MoAs with multiple central public sector undertakings (CPSUs) for stalled hydropower projects, expanding the pipeline for future capacity. For NHPC, Etalin sits alongside the 2,880 MW Dibang Multipurpose project that the company is already implementing in the same district.

Etalin’s design: run-of-the-river with two dams

The Etalin plant is being envisaged as a run-of-the-river project. It involves constructing two concrete gravity dams on the Dri and Tangon rivers, which are tributaries of the Dibang river. The site is in Dibang Valley district of Arunachal Pradesh.

Separate project documents referenced in the material describe Etalin as a 3,097 MW scheme, with a common underground powerhouse located upstream of the confluence of the Dri and Tangon rivers. Those documents also estimate annual energy generation at about 12,991.52 million units (MU) in a 90% dependable year with 95% machine availability. The same set of documents notes a historical cost estimate of ₹25,296.95 crore at December 2011 price level for the 3,097 MW project.

What’s happening with the MoA and approvals

NHPC’s latest position, as conveyed to ET, is that the MoA signing with Arunachal Pradesh is underway and the project proposal is under approval. This indicates the process is currently focused on finalising the formal arrangement with the state and securing approvals needed to move the proposal forward.

The wider context includes earlier project transfers and allocations among central and private sector entities. NHPC was assigned the Etalin Hydroelectric Project by the Centre in November 2025 for further development, following its earlier transfer to SJVN Limited. The state conveyed its in-principle approval for the transfer in December 2025, as indicated in the material.

How Etalin moved between developers

The project has seen multiple administrative steps over the years. An official statement in the material says SJVN Limited took over the 3,097 MW Etalin project along with four other hydro projects in Arunachal Pradesh totalling 5,097 MW after signing an MoA with the Arunachal Pradesh government on August 12, 2023. Officials also said SJVN released land compensation amounting to ₹269.98 crore for Etalin.

Separately, the material notes that Arunachal Pradesh signed MoAs with hydropower PSUs for execution of 12 stalled hydroelectric projects with a cumulative installed capacity of about 11,517 MW. Under that grouping, five projects of 5,097 MW were allotted to SJVN, two projects of 3,800 MW to NHPC, and five projects of 2,620 MW to NEEPCO. Etalin appears in the list of projects allotted to SJVN under this 2023 MoA framework.

NHPC’s broader hydro footprint in the region

Etalin is located in Dibang Valley, where NHPC is implementing the 2,880 MW Dibang Multipurpose project in the lower reaches of the Dibang river. The proximity matters operationally because multiple projects in a single river basin can require coordinated planning around construction logistics, land acquisition, transmission infrastructure, and regulatory clearances.

In addition, the material references other major projects linked to NHPC’s Northeast pipeline, including Subansiri Lower (2,000 MW), which is described as being at an advanced stage with 750 MW already commissioned. The remaining capacity is expected to be commissioned by December 2026, according to the same text.

Cabinet approval for Kamala HEP: key numbers

Alongside Etalin’s planning, the Cabinet Committee on Economic Affairs (CCEA) has approved a major investment for the Kamala Hydro Electric Project (HEP) in Arunachal Pradesh. The CCEA approved an investment of ₹26,069.50 crore for the 1,720 MW project (8 x 210 MW and 1 x 40 MW) in the Kamle, Kra Daadi, and Kurung Kumey districts. The completion period is set at 96 months.

The material states Kamala is expected to generate 6,870 MU of energy annually. It will be implemented through a joint venture company between NHPC Limited and the Government of Arunachal Pradesh. The same text notes Government of India support of ₹4,743.98 crore towards the flood moderation component, ₹1,340 crore for enabling infrastructure such as roads, bridges and associated transmission system, and central financial assistance of ₹750 crore towards the state’s equity share.

Key project snapshot table

Market impact: what investors track from this update

For NHPC, the update is primarily about project pipeline visibility and execution milestones. The company has publicly indicated that the MoA signing process is underway and that the proposal is under approval, which are early but essential steps in large infrastructure projects. For investors, the key factual signals in the material are the proposed capital outlay for Etalin of about ₹30,000 crore and the fact that the project has been formally assigned for further development after earlier transfers.

The Cabinet approval for Kamala provides a separate, concrete milestone, backed by a sanctioned investment of ₹26,069.50 crore and a 96-month timeline. The explicit budgetary support items for flood moderation, enabling infrastructure, and state equity assistance are additional reference points that markets often use to gauge project bankability and the division of costs.

Why Arunachal’s hydro pipeline is expanding

The material indicates a broader state-level push to move stalled projects forward through MoAs with CPSUs. The 12 projects referenced add up to about 11,517 MW and are expected to result in an estimated investment inflow of about ₹126,500 crore (₹1,265 billion) to Arunachal Pradesh. Another figure cited is ₹3,052 crore annually as the state’s earnings from the 12% free power component from these projects.

The same set of details also references a Local Area Development Fund equivalent to 1% of project revenue and 12% free power to host states. These mechanisms are presented as part of the broader framework through which hydropower development supports state finances and local development.

What to watch next

The next formal milestones for Etalin, based on NHPC’s response, are completion of the MoA signing with Arunachal Pradesh and approvals for the project proposal. For Kamala, the key deliverable is execution under the joint venture company structure and progression against the 96-month timeline already approved by the CCEA.

As project documentation and approvals progress, investors and local stakeholders will track the sequence of administrative clearances, compensation and land-related actions already referenced for Etalin in earlier phases, and the enabling infrastructure commitments cited for Kamala.