Jammu, Jan 29: 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 on January 27, 2024, officials said.
The river diversion is a critical step that enables the isolation of the dam area at the riverbed, paving the way for the commencement of crucial activities such as excavation and dam construction.
This development is expected to accelerate project construction, minimizing delays and supporting the efforts to meet the scheduled commissioning date of May 2026.
Ratle Hydroelectric Power Corporation Limited (RHPCL), a Joint Venture of NHPC Limited and the Government of J&K with a shareholding ratio of 51:49 per cent, is overseeing the Ratle Project.
This hydroelectric project, situated on the Chenab River in Kishtwar District, boasts an installed capacity of 850 MW. The Cabinet Committee on Economic Affairs sanctioned the project in January 2021, allocating a total cost of Rs. 5281.94 crores.
New Delhi is supporting the Union Territory of Jammu and Kashmir with a grant of Rs. 776.44 crore for JKSPDC’s equity contribution. NHPC will invest Rs. 808.14 crore from its internal resources. The Ratle Hydro Electric Project is expected to be commissioned in May 2026 contributing to grid balancing and improving the power supply position.
To enhance the project’s viability, the Government of the Union Territory of Jammu and Kashmir will provide exemptions from water usage charges for 10 years post-commissioning.
Additionally, there will be reimbursement of the State’s share of GST and a gradual waiver of free power to the Union Territory, starting at 1% in the 1st year after commissioning and increasing by 1% per year to reach 12% in the 12th year.
The implementation of the Ratle Hydro Electric Project is poised to create direct and indirect employment for around 4000 individuals, contributing to the overall socio-economic development of the Union Territory. Furthermore, the Union Territory stands to benefit from free power worth Rs. 5289 crore and water usage charges amounting to Rs. 9581 crore over the project’s 40-year life cycle.