Srinagar, June 9: The National Hydroelectric Power Corporation Limited (NHPC) and the J&K State Power Development Corporation Limited (JKSPDC) have incorporated a joint venture company— Ratle Hydroelectric Power Corporation Limited (R-HPCL)— for the implementation of 850 MW Ratle power project in Chenab river basin.
“The JVC was incorporated on 1 June 2021 with NHPC and JKSPDC holding equity shares of 51% and 49% respectively," a senior J&K government official informed.
The 850 MW Ratle project is a run-of-the-river scheme located on the Chenab in Kishtwar district.
According to the JV, the company shall have an authorised share capital of Rs 1,600 crore divided into 160 crore equity shares of the face value of Rs 10 each. The initial paid-up share capital shall be Rs 100 crore divided into 10 crore equity shares of the face value of Rs 10 each, which shall be subscribed by the promoters as early as possible but not later than 90 days from the date of incorporation of the company.
"The chief executive officer (CEO) shall be responsible for day-to-day management of the JV. The post of CEO shall be below board level and shall be the nominee of the NHPC," officials said.
Initially, the board shall comprise seven directors. JKSPDC nominated three part-time directors, including chairman, and NHPC nominated four part-time directors on the board of the company. JKSPDC is also a party to another JV of NHPC — Chenab Valley Power Projects Private Ltd.
Earlier in 2019, a tripartite Memorandum of Understanding (MoU) was signed on 03.02.2019 amongst JKSPDC, NHPC and erstwhile Government of Jammu & Kashmir in presence of Prime Minister, Narendra Modi. Further, a supplementary MoU for implementation of the Ratle hydroelectric project was signed in 2021.
Union Ministry of Power has already conveyed investment sanction for construction of 850 MW Ratle HEP at an estimated cost of Rs. 5281.94 crore (at Nov.2018 price level). Subsequently, the Promoters Agreement was signed on 13.04.2021 leading to the incorporation of R-HPCL.
J&K’s administrative Council has also approved the exemptions to the project in order to make it viable. However, the accord of exemptions has also been restricted to the bare minimum necessary for viability of the project.
Accordingly, exemption of the UT's share of free power (12%) from the project was approved in a ‘decremental’ manner only. The Administrative Council also ordered that the share of free power will be restored to the normal quota of 12 per cent from the 12th year onwards.
"Approval for waiver of water usage charges (WUC) for the project for a period of 10 years from the first year of Commercial operation (CoD) of the Project as well as reimbursement of SGST by the Union Territory of Jammu and Kashmir for all supplies to the project was also accorded," J&K government had stated in a statement.