New Delhi: The government on Wednesday approved a proposal to invest Rs 4,526.12 crore for constructing the 540 MW Kwar hydroelectric project in Jammu & Kashmir.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, cleared the investment proposal for the project located on Chenab river in Kishtwar district of the Union Territory.
The project will be implemented by Chenab Valley Power Projects Private Ltd (CVPPL), a joint venture company between NHPC and JKSPDC, with equity contribution of 51 percent and 49 percent respectively, according to an official statement.
The project shall generate 1,975.54 million units of power in a 90 percent dependable year.
Briefing the media, Union Information and Broadcasting Minister Anurag Thakur said the Cabinet has “approved construction of 540 Megawatt Kwar Hydro Electric project at a cost of Rs 4,526.12 crore”.
The Centre will extend a grant of Rs 69.80 crore towards cost of enabling infrastructure and also support the Union Territory by providing grant of Rs 655.08 crore for equity contribution of JKSPDC (49 percent) in CVPPPL, the statement said.
NHPC will invest Rs 681.82 crore from its internal resources.
The project is to be commissioned within a span of 54 months. The project will result in direct and indirect employment for around 2,500 persons, the statement said.
With the project, the Union Territory will get free electricity worth around Rs 4,548.59 crore during its 40-year life cycle. J&K will also receive benefit to the tune of Rs 4,941.46 crore through water usage charges during the same period.
To make the project viable, J&K government will provide exemption of water usage charges for 10 years after commissioning, reimburse state’s share of GST and give waiver of free power at the rate of two percent per year in a decremental manner.
