Cabinet sanctions Rs 4k cr for 540 MW Kwar Hydro Electric project

28 Apr 2022 CW Team

The Committee on Economic Affairs, chaired by PM Narendra Modi, approved the investment of Rs 4,526.12 crore for 540 MW Kwar Hydro Electric Project on river Chenab, in Kishtwar, Jammu and Kashmir.

This project will be implemented by Chenab Valley Power Projects Private Limited (CVPPL), a joint venture (JV) firm between National Hydroelectric Power Corporation (NHPC) Limited and Jammu & Kashmir State Power Development Corporation Limited (JKSPDC) with an equity contribution of 51% and 49% respectively.

It will generate 1,975.54 million units in a 90% dependable year.

The government is extending a grant of Rs 69.80 crore for the cost of enabling infrastructure and supporting Jammu and Kashmir by providing a grant of Rs 655.08 crore for the equity contribution and Rs 681.82 crore from its internal resources.

The project shall be commissioned within 54 months. The power generated from the project will help in balancing the grid and improve the power supply position.

Jammu and Kashmir government is extending exemption from levy of Water Usage Charges for ten years after commissioning the project, reimbursement of state's GST, and waiver of free power at 2% per year in a decremental manner.

The construction works for the project will provide direct and indirect employment for around 2,500 persons and contribute to socio-economic development in J&K.

Jammu and Kashmir 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 for 40 years.

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Also read: Mega hydro power projects to come up in J&K

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