Union Cabinet approved Rs 5,281.94 crore for the 850 MW Ratle hydro power project on river Chenab in Kishtwar
NHPC and JKSPDC will together construct the project as a joint venture, the centre will have a 51% stake in the project
New Delhi: Union Cabinet on Wednesday approved Rs 5,281.94 crore investment for the 850 MW Ratle hydro power project on river Chenab in Kishtwar district of Union Territory of Jammu and Kashmir. Centre will have 51 percent stake in the project through a joint-venture between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC). The latter will have a share of 49 percent. NHPC will invest Rs 808.14 crore generated from the power PSU's internal resources. The Ratle hydro electric project is scheduled to be commissioned within 60 months.
"The Government of India is also supporting the Union Territory of Jammu and Kashmir by providing a grant of Rs 776.44 crore for an equity contribution of JKSPDC in the JVC", an official statement released on Wednesday evening said. The power generated from the project will help in providing the balancing of the grid and improve the power supply position, it added.
In order to make the project financially viable, the government of the UT of Jammu and Kashmir will extend the exemption from levy of water usage charges for 10 years after commissioning of the project, reimbursement of state's share of GST (SGST) and waiver of free power to the UT in a decremental manner. That is, the free power to the Union Territory would be 1 percent in the first year after commissioning of the project and rise at the rate of 1 percent per year to 12 percent in the 12th year, it added.
"The construction of Ratle hydro power project will result in direct and indirect employment to around 4,000 persons and will contribute to the overall socio-economic development of the Union Territory" the statement further added.
Also, the Union Territory of Jammu and Kashmir will be getting free power worth Rs 5,289 crore and levy of water usage charges worth Rs 9,581 crore during the project life cycle of 40 years.
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