New Delhi: The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi on Wednesday approved the investment of Rs 4526.12 Cr for 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab in Kishtwar district of Union Territory of Jammu and Kashmir.
The project will be implemented by M/s Chenab Valley Power Projects Private Limited (CVPPPL) a joint venture company between NHPC and JKSPDC with equity contribution of 51 percent and 49 percent respectively on April 27, 2022.
As per an official statement, the project will generate 1975.54 million units in a 90 percent dependable year.
Kwar is among two Hydro Electric Power Projects, the foundation stones of which were laid by the Prime Minister during his visit to Palli Panchayat of Samba in J&K on April 24, 2022 to commemorate “National Panchayati Raj Diwas.”
As per official statement, the Government of India is extending grant of Rs 69.80 Cr towards the cost of enabling infrastructure and also supporting the Union Territory of Jammu & Kashmir by providing a grant of Rs 655.08 Cr for equity contribution of JKSPDC (49 percent) in M/s CVPPPL. “NHPC shall invest its equity (51 percent) of Rs681.82 Cr from its internal resources. The Kwar Hydro Electric Project shall be commissioned within a span of 54 months. The power generated from the project will help in balancing of Grid and will improve the power supply position,” it added.
“Government of UT of J&K will make the project viable, extending 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 at the rate of 2 percent per year in a decremental manner, i.e. the free power to the Union Territory of Jammu & Kashmir would be 2 percent in the 1st year after commissioning of Project and thereafter shall increase at the rate of 2 percent per year and shall be 12 percent from 6th year onwards,” it added.
The construction activities of the Project will result in direct and indirect employment to around 2500 persons and will contribute in overall socio-economic development of the Union Territory of J&K.
Further, UT of J&K will be benefitted of Jammu & Kashmir with free power of around Rs 4,548.59 Cr and Rs 4,941.46 Cr with Water Usage Charges from Kwar Hydro Electric Project, during project life cycle of 40 years, the official statement said.
Another project, the foundation stone of which was laid by the Prime Minister on April 24, 2022 at Palli was 850 MW Ratle HEP also to be constructed on Chenab river in Kishtwar district at a cost of around Rs 5300 Cr. Both the projects were part of the development projects worth Rs 20,000 Cr launched by the Prime Minister during his visit to J&K.