Srinagar/New Delhi: The government on Monday announced the diversion of Chenab river water through diversion tunnels at Drabshalla in Kishtwar district to expedite the 850-MW Ratle Hydro Electric Project in Jammu & Kashmir.
“A major milestone has been achieved at the 850 MW Ratle Hydro Electric Project in Jammu & Kashmir with the diversion of Chenab river through diversion tunnels at Drabshalla in Kishtwar district, at 11.30 AM on January 27, 2024,” the Power Ministry said in a statement.
The diversion of river flow will enable isolation of the dam area, paving the way for the excavation and construction works, it said.
The move will expedite construction activities and help in minimising delays so as to facilitate all efforts to meet the scheduled commissioning deadline of May 2026, the ministry said.
Ratle project is being executed by Ratle Hydroelectric Power Corporation Limited (RHPCL), a joint venture of NHPC Limited and the government of J&K, with a shareholding of 51:49 per cent, respectively.
Ratle project is situated on the Chenab River in the Kishtwar district of J&K with an installed capacity of 850 MW. The Cabinet Committee on Economic Affairs sanctioned the project in January 2021 at the cost of Rs 5,281.94 crore.
Meanwhile, in a related development, the Union Cabinet, chaired by Prime Minister, Narendra Modi, has given its approval for the investment of Rs. 5281.94 crore for 850 MW Ratle Hydro Electric Project, 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 percent and 49 percent respectively, an official handout informed.
It said the Government of India is also supporting the Union Territory of Jammu and Kashmir by providing a grant of Rs. 776.44 crore for Equity contribution of JKSPDC in the JVC to be set up for the construction of Ratle project. NHPC shall invest its equity Rs. 808.14 crore from its internal resources. The Ratle hydro electric project shall be commissioned within a span of 60 months. The power generated from the project will help in balancing of Grid and will improve the power supply position, the press release said.
It said the Government of Union Territory of Jammu and Kashmir, in order to make the project viable, will extend exemption from levy of Water Usage Charges for 10 years after commissioning of the project, reimbursement of State’s share of GST (i.e. SGST) and waiver of free power to the Union Territory of Jammu and Kashmir in a decremental manner, i.e., the free power to the Union Territory of Jammu and Kashmir would be 1 percent in the 1st year after commissioning of the project and rising @1 percent per year to 12 percent in the 12th year.
The construction activities of the project will result in direct and indirect employment to around 4000 persons and will contribute in overall socio-economic development of the Union Territory of Jammu and Kashmir, the press release said.
It said the Union Territory of Jammu and Kashmir will be benefitted by getting free power worth Rs 5,289 crore and through levy of Water Usage Charges worth Rs 9581 crore from Ratle hydro electric project during project life cycle of 40 years.
