Rs 5300 Cr project JV between NHPC, JKPDC; J&K’s equity of Rs 776 Cr grant from Centre: UT Govt
BK News
Srinagar, Oct 1: Union Finance Ministry’s Public Investment Board (PIB) has recommended that the 850 MW Ratle Hydro Electric Project be developed through a joint venture company (JVC) between the J&K Power Development Corporation (JKPDC) and the National Hydroelectric Power Corporation (NHPC).
The board has also recommended an investment approval for Rs 5,281.94 crore for the project including an Infusion of Equity of Rs 808.14 crore by NHPC in the joint venture company. The equity contribution of JKPDC in the company pegged at Rs 776.44 crore will be provided as a grant from the Government of India, an official spokesperson said. However, the spokesperson has not elaborated on the exact share of NHPC and JKPDC in the JVC.
The recommendations of the board will pave the way for final approval of the project and an early beginning of work on the project. The 850 MW Ratle HEP was the first project in India which was awarded through tariff-based bidding. However, the project got stalled due to the unilateral withdrawal by the erstwhile developer from the project. All the clearances for the project are already in place and the project is expected to be completed within 36 months of the start of work. The initiation of the project will be yet another step in adding to the revenues of the UT from its abundant hydro resources.
Although a Memorandum of Understanding (MoU) had been signed among J&K Power Development Department, J&K State Power Development Corporation Limited and NHPC Limited on February 3, 2019 regarding the execution of the project in JV mode, yet the matter had remained pending for want of a final decision on the mode of execution. The government of J&K had been consistently arguing for the execution of the work in the JV mode as agreed in the February 2019 MoU.
J&K has over 20,000 MW of hydropower potential, out of which 16000 MW has been identified. With the board decision, J&K would have moved another step closer to harnessing nearly 2500 MW of this potential, the spokesperson said. While the 1000 MW Pakaldul project and 624 MW Kiru are already under execution by Chenab Valley Power Project Private Limited (CVPPL), a Joint Venture of JKSPDC, NHPC and PTC India limited, the 540 MW Kawar is likely to be taken up shortly.
Now that the decks have been cleared for the 850 MW Ratle project too to come up after incorporation of Joint Venture company i.e Jammu Hydroelectric Power Corporation Limited, an additional 3000 MW will be available to supplement the demand-supply position in J&K and boost the overall economy of the UT.
