New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the investment of Rs 4526.12 crore for 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab in Kishtwar district of Union Territory of Jammy and Kashmir. The project will be implemented by Chenab Valley Power Projects Private Limited (CVPPL), a joint venture company between NHPC and JKSPDC with equity contribution of 51 per cent and 49 per cent respectively.
The project shall generate 1975.54 million units in a 90 per cent dependable year. The Government of India is extending a grant of Rs 69.80 crore towards the cost of enabling infrastructure and also supporting the Union Territory of Jammu & Kashmir by providing a grant of Rs 655.08 crore for equity contribution of JKSPDC (49 per cent) in CVPPPL. NHPC shall invest its equity (51 pc) of Rs 681.82 crore 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 the grid and will improve the power supply position.
The Government of UT of J&K will make the project viable, extending exemption from levy of water usage charges for 10 years after the commissioning of the project, reimbursement of the state’s share of GST (that is SGST) and waiver of free power at two per cent per year in a decremental manner, that is, free power to the Union Territory of Jammu & Kashmir would be two per cent in the first year after commissioning of the project and thereafter shall increase at two per cent per year and shall be 12 per cent from the sixth year onwards.
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, the UT of J&K will be benefitted with free power of around Rs 4,548.59 crore and Rs 4,941.46 crore with water usage charges from Kwar Hydro Electric Project, during the project life cycle of 40 years. /BI/
