New Delhi: REC Limited has signed an agreement with Chenab Valley Power Project Limited (CVPPL) to extend a term loan of Rs 2,147.508 crore. The funding will support the development and construction of the greenfield Pakal Dul Hydro Electric Project, a 1000MW hydroelectric initiative in the Kishtwar district of Jammu & Kashmir.
The formal signing ceremony took place at CVPPL’s Corporate Office in Jammu and was attended by CVPPL's Managing Director Ramesh Mukhiya and REC Limited's Chief Project Manager (CPM) at Regional Office in Jammu Bhupesh Chandolia along with senior officials from both organisations.
The Pakal Dul Hydro Electric Project, with an estimated total cost of Rs 12,669.67 crore, is being developed on the Marusadar River, a major tributary of the Chenab River. The project is expected to significantly enhance the region’s renewable energy capacity, bolster energy security, and contribute to India’s transition to clean energy.
This latest agreement builds on REC Limited’s ongoing support for hydroelectric projects in the region. In April 2024, REC had extended financial assistance of Rs 1,869.265 crore as a term loan for the development, construction, and operation of the 624MW Kiru Hydro Electric Project, also located in the Kishtwar district on the Chenab River.
The collaboration between REC and CVPPL underscores the government’s commitment to harnessing hydroelectric potential in Jammu & Kashmir, promoting sustainable development, and ensuring energy self-sufficiency in the region.
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