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NHPC Signs 40-Year Power Purchase Agreement with TSECL for 1,720 MW Kamala Hydroelectric Project

NHPC Ltd. has signed a 40-year Power Purchase Agreement (PPA) with the Tripura State Electricity Corporation Ltd. (TSECL) for the supply of electricity from its proposed 1,720 MW Kamala Hydroelectric Project in Arunachal Pradesh. The agreement marks a significant step towards strengthening long-term clean energy supply to Tripura while supporting India's growing reliance on renewable and dispatchable hydropower.

The agreement was signed during the Destination Tripura: Business Conclave 2026, organised by the Government of Tripura, and will remain effective for 40 years from the Commercial Operation Date (COD) of the project. Under the long-term arrangement, NHPC will supply hydroelectric power to TSECL, helping the state secure reliable, low-carbon electricity for decades.

The Power Purchase Agreement was signed by Ranjeet Thakur, General Manager (Commercial), NHPC, and Sujata Sarkar, Deputy General Manager (Commercial), TSECL, in the presence of Abhisek Singh, IAS, Secretary, Department of Power, Government of Tripura, Biswajit Basu, Managing Director, TSECL, and senior officials from both organisations.

Commenting on the development, Bhupender Gupta, Chairman and Managing Director of NHPC, said the long-term agreement reinforces NHPC's commitment to supporting India's clean energy transition through sustainable hydropower development. He noted that the partnership would enhance long-term energy security while contributing to the country's renewable energy expansion and decarbonisation goals.

The Kamala Hydroelectric Project, with an installed capacity of 1,720 MW, is one of NHPC's major upcoming hydroelectric developments in Arunachal Pradesh. The project is expected to generate clean electricity that can be supplied to multiple states through the national transmission network, supporting grid stability and meeting rising electricity demand across the North Eastern region and other parts of the country.

Hydropower plays a critical role in India's evolving energy mix because, unlike solar and wind energy, it can generate electricity continuously and respond quickly to fluctuations in demand. Large hydro projects provide valuable grid balancing, frequency regulation, peak load support, and operational flexibility, making them an important complement to rapidly expanding renewable energy capacity. As India increases the share of solar and wind power, flexible hydroelectric generation is expected to become even more important in maintaining grid reliability.

For Tripura, the agreement strengthens long-term energy security by ensuring access to dependable renewable electricity from a diversified source. The state has been actively pursuing investments in power infrastructure and renewable energy through initiatives announced during the Destination Tripura: Business Conclave 2026, including partnerships in transmission, distributed renewable energy, and clean power development.

The agreement also aligns with India's broader objective of increasing non-fossil fuel-based electricity generation while reducing dependence on conventional thermal power. Long-term PPAs such as this provide revenue certainty for project developers while enabling state utilities to secure stable power supplies at predictable tariffs over extended periods, supporting both infrastructure planning and sustainable economic growth.

With the signing of this 40-year agreement, NHPC and TSECL have strengthened their partnership in advancing clean energy deployment, reinforcing the strategic role of hydropower in India's renewable energy transition while improving long-term electricity reliability for consumers in Tripura.