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The Union Cabinet on Wednesday gave its approval for ₹5,281.94-crore investment in the 850-MW Ratle Hydro Electric (HE) Project located on river Chenab, in Kishtwar district of Jammu and Kashmir.
The investment will be made by a new joint venture company (JVC) to be incorporated between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with equity contribution of 51 per cent and 49 per cent respectively.
Centre’s support
The Centre will provide a grant of ₹776.44 crore for equity contribution of JKSPDC in the JVC. NHPC shall invest its equity of ₹808.14 crore from its internal resources. The Ratle Hydro Electric Project will be commissioned within a span of 60 months, an official release said.
The power generated from the project will help in balancing of the grid and improve the supply position.
Implementation strategy
To make the project viable, the Government of Jammu and Kashmir will extend exemption from levy of water usage charges for 10 years after commissioning of the project, reimbursement of State's share of GST (that is, SGST) and waiver of free power to Jammu and Kashmir in a decremental manner,that is, the free power will be 1 per cent in the first year after commissioning of the project and rising at 1 per cent per year to 12 per cent in the 12th year.
The construction activities will result in direct and indirect employment to around 4,000 persons and will contribute in overall socio-economic development of Jammu and Kashmir, the release added. Further, the Union Territory will be benefitted by getting free power worth ₹5,289 crore and through levy of water usage charges worth ₹9,581 croreduring project life cycle of 40 years, the release added.
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