Cabinet approves investment proposal of Rs 5281.94 crore for 850 MW Ratle Hydro Power Project
New Delhi, January 21, 2021
The Union Cabinet on Wednesday gave its approval for the investment of Rs 5281.94 crore for the 850 MW Ratle Hydro Electric (HE) Project located on river Chenab, in Kishtwar district in Jammu and Kashmir by a new joint venture company (JVC).
The JVC will be incorporated between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with equity contribution of 51% and 49%, respectively, the Cabinet was informed.
The Union Government has given a grant of Rs. 776.44 crores for an equity contribution of JKSPDC in the JVC to be set up for construction of Ratle HE Project (850 MW). NHPC will invest its equity Rs 808.14 crore from its internal resources, an official press release said.
The Ratle Hydro Electric Project will be commissioned within 60 months. The power generated from the project will help in providing the balancing of grid and will improve the power supply position.
J &K Government will extend the exemption from levy of Water Usage Charges for 10 years after commissioning of the project. It will also reimburse the State's share of GST ( SGST) and waiver of free power to the Union Territory of Jammu and Kashmir in a decremental manner.
The free power to Jammu and Kashmir would be 1% in the first year after commissioning of the Project and rising at one per cent per year to 12% in the 12th year.
The construction activities will result in direct and indirect employment to around 4,000 persons and will contribute to the overall socio-economic development of Jammu and Kashmir. The Union Territory will be benefitted by getting free power worth Rs. 5289 crore and through the levy of Water Usage Charges worth Rs.9581 crore from Ratle Hydro Electric Project, during the project life cycle of 40 years, the release added.