Govt approves Rs 2,614 crore investment for SJVN’s Sunni Dam Hydro Project

New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the investment of Rs 2,614 crore for SJVN Limited's 382 MW Sunni Dam Hydro Electric Project in Himachal Pradesh.

According to an official statement from SJVN, this project shall generate 1,382 million units annually and the levelized tariff of electricity generated will be Rs 3.90 per unit. The project is scheduled to be commissioned within 63 months of the commencement of construction works. The project is being financed on 70:30 debt-equity ratio and on completion it will earn 16.50 percent return on equity for SJVN.

Speaking on this development SJVN Limited's Chairman & Managing Director (CMD) Nand Lal Sharma said that the Run of River project being executed on river Satluj in districts Shimla & Mandi of Himachal Pradesh will have 71-meter-high concrete gravity Dam and six generating units in its surface Power House.

Sharma shared that the Forest & Environment Clearances have already been accorded while Rs 266 crores have been spent on pre-construction activities. He further said that project construction activities with result in direct and indirect employment to around 4,000 persons. On commissioning, 13 percent of the electricity generated will be provided free of cost to the Government of Himachal Pradesh including 1 percent for Local Area development fund. For the project life cycle of 40 years, this free power translates into benefits of Rs 2,803 crores.

Sharma further said that to each project affected family, 100 units of free electricity per month will be provided for ten years. The development of the project will also lead to betterment of roads, bridges, healthcare and other infrastructure and this will play a vital role in socio-economic development of the region.

Sunni Dam Hydro Electric Project will provide 1,382 MU of green energy to the grid and will reduce carbon dioxide emissions by 1.1 million tons annually. This hydro project will play a crucial role in balancing the grid over intermittent nature of solar & wind power. The commissioning of this project will contribute significantly towards Government of India's vision to provide Round The Clock Power to All.

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