BackCCEA approves 540 MW hydro electric project on Chenab river in J&K
The project will be implemented by Chenab Valley Power Projects Private Limited. This project will generate 1975.54 million units in a 90% dependable year
PremiumThe Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi, on Wednesday approved the investment of Rs. 4,526.12 crores for 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab, in Kishtwar district of Union Territory of Jammu and Kashmir.
The project will be implemented by M/s. Chenab Valley Power Projects Private Limited (M/s. CVPPPL) a joint venture between NHPC and JKSPDC (Jammu and Kashmir State Power Development Corporation) with equity contribution of 51% and 49% respectively.
This project will generate 1975.54 million units in a 90% dependable year.
The Government of India is extending grant of Rs. 69.80 crore towards cost of enabling infrastructure and supporting the Union Territory of Jammu and Kashmir by providing a grant of Rs. 655.08 crore for equity contribution of JKSPDC (49%) in M/s. CVPPPL.
NHPC will invest its equity (51%) of Rs. 681.82 crore from its internal resources.
The Kwar Hydro Electric Project will be commissioned for 54 months. The power generated from the project will help balance the grid and improve the power supply position.
To make the project viable, the Gov of UT of J&K will extend exemption from levy of water usage charges for 10 years after commissioning the project.
Reimbursement of state’s share of GST (SGST) and waiver of free power at 2% per year in a decremental manner. This means that the free power to the Union Territory of Jammu & Kashmir would be 2% in the 1st year after commissioning of Project and thereafter shall increase at 2% per year and will be 12% from 6th year onwards.
The construction activities of the Project will result in direct and indirect employment for almost 2,500 people. It will also contribute in overall socio-economic development of the Union Territory of J&K.
The UT of J&K will be benefitted of Jammu & Kashmir with free power of around Rs.4,548.59 crore and Rs.4,941.46 crore with Water Usage Charges from Kwar Hydro Electric Project, during project life cycle of 40 years.
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