Friday, May 13, 2022

Amid power cuts in Kashmir, Cabinet approves construction of new hydro project

Must read

New Delhi: While Kashmir is reeling under heavy power cuts, the Cabinet Committee on Economic Affairs (CCEA) approved the construction of a new hydro project in the region. The CCEA chaired by Prime Minister Narendra Modi on Wednesday approved the investment of Rs 4,526.12 crore for 540 Megawatt (MW) Kwar Hydro Electric Project (HEP) located on river Chenab, in the Kishtwar district of Union Territory of Jammy & Kashmir. According to a Power Ministry statement, the project will be implemented by Chenab Valley Power Projects Private Limited (CVPPL) a joint venture company between NHPC and JKSPDC with equity contributions of 51 percent and 49 percent respectively.

"The project shall generate 1975.54 million units in a 90 percent dependable year," the statement added.

The Government is extending grant of Rs 69.80 crore towards cost of Enabling Infrastructure and also supporting the Union Territory of Jammu & Kashmir by providing grant of Rs 655.08 crore for the equity contribution of JKSPDC (49 percent) in CVPPPL. NHPC shall invest its equity 51 percent of Rs 681.82 crore from its internal resources. The Kwar Hydro Electric Project shall be commissioned within a span of 54 months. The Power generated from the project will help in balancing of the grid and will improve the power supply position.

Government of Jammu & Kashmir to make the project viable, extending exemption form levy of water usage charges for 10 years after commissioning of the project, reimbursement of State’s share of GST (i.e. SGST) and waiver of free power at 2 percent per year in a decremental manner, i.e. the free power to the Union Territory of Jammu & Kashmir would be 2 percent in the 1st year after commissioning of project and thereafter shall increase at 2 percent per year and shall be 12 percent from 6th year onwards.

The construction activities of the project will result in direct and indirect employment to around 2500 persons and will contribute in the overall socio-economic development of the Union Territory of Jammu & Kashmir.  Further, the UT of Jammu & Kashmir will be benefitted from 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 the project life cycle of 40 years

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.).

- Advertisement -

More articles

- Advertisement -

Latest News