Centre approves Rs 5,281.94 crore for 850 MW Ratle Hydro Power on Chenab in J&K

Tribune News Service
New Delhi, January 20

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The government on Wednesday approved an investment proposal of Rs 5,281.94 crore for 850 MW Ratle Hydroelectric Power Project on the river Chenab in the Kishtwar district of the Union Territory (UT) of Jammu & Kashmir (J&K).

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 contributions of 51 per cent and 49 per cent respectively.

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

“The Ratle Hydro Electric Project shall be commissioned within a span of 60 months. The power generated from the project will help in balancing the grid and will improve the power supply situation in the UT,” the government said.

To make the project viable, the government of J&K will extend exemption from levy of “Water Usage Charges” for 10 years after commissioning of the project, reimbursement of state’s share of GST and waiver of free power to the UT in an incremental manner — the free power would be 1 per cent in the 1st year after commissioning of the project and rising at the rate of 1 per cent per year to 12 per cent in the 12th year.

“The construction activities on the project will result in direct and indirect employment to around 4,000 persons and will contribute to overall socio-economic development of the J&K. Further, the UT will be benefitted by getting free power worth Rs 5,289 crore and through levy of Water Usage Charges worth Rs 9,581 crore during the project life cycle of 40 years,” it said.