Kwar hydropower project receives grant of Rs 4,526 crore

29 Apr 2022 CW Team

On Wednesday the Cabinet Committee on Economic Affairs sanctioned the investment of Rs 4,526.12 crore for the Kwar Hydro-electric project of 540 MW located on Chenab River in Kishtwar district, Jammu and Kashmir.

This forms a part of the Indus basin and will be one of the minimum four upcoming projects in the district, comprising the Pakal Dul hydroelectric project of 1,000 MW and the run-of-the-river Kiru hydroelectric project of 624 MW.

Under the 1960 vintage Indus Water Treaty (IWT) established between India and Pakistan, both the countries share the six rivers in the Indus basin flowing through India towards Pakistan. Out of which, India has full rights over three eastern rivers, Beas, Sutlej, and Ravi, and Pakistan over the western rivers - Jhelum, Chenab, and Indus.

However, India can build run-of-the-river projects on the western rivers as well. In the last five years, the government has been approving construction projects to tap into the potential in the Indian part of the Indus basin.

The Kwar hydropower project would be implemented by Chenab Valley Power Projects Private Limited (CVPPL), a joint venture between NHPC Limited and Jammu and Kashmir State Power Development Corporation (JKSPDC) having equity contributions of 51% and 49% respectively.

The project would generate 1,975.54 million units within a 90% dependable year. The government of India extended a grant of Rs 69.80 crore for the cost of enabling infrastructure while supporting the Union Territory of Jammu and Kashmir by sanctioning a grant of Rs 655.08 crore for the equity contribution of JKSPDC in VPPPL. NHPC will invest its equity of Rs 681.82 crore from its internal resources.

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