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Centre nod to Rs. 5K crore Kishtwar power project

New Delhi
January 21, 2021

The Government today approved an investment proposal of Rs 5281.94 crore for the 850-MW Ratle Hydroelectric Project on the river Chenab in the Kishtwar district of the union territory (UT) of Jammu & Kashmir.

A decision in this regard was taken today at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.
In an official statement, the Government said the project would be implemented by a joint venture (JV) company to be incorporated between National Hydroelectric Power Corporation (NHPC) and J&K State Power Development Corporation Ltd (JKSPDC) with equity contribution of 51 % and 49 %, respectively.

According to the official release, besides the NHPC�s equity participation, the Centre would additionally contribute Rs 776.44 crore as grant to the JKSPDC for its equity contribution. The NHPC will invest its equity of Rs 808.14 crore from its internal resources, it added.

�The Ratle Hydro Electric Project will be commissioned within a span of 60 months. The power generated from the project will help in balancing the grid and improving power supply situation in the UT,� the Government said.

To make the project viable, the government of J&K will extend exemption from levying of �Water usage charges� for 10 years after commissioning of the project, reimbursement of the state�s share of GST and waiver of free power to the UT in an incremental manner � the free power will be 1 % in the first year after commissioning of the project and rising at the rate of 1 % per year to 12 % in the 12th year.