Investment approval for Hydro Electric Project in Himachal by SJVN

06 Jan 2023 CW Team

The Cabinet Committee on Economic Affairs has approved the investment for the 382 MW Sunni Dam Hydro Electric Project in Himachal Pradesh by SJVN, for an estimated cost of Rs 26.14 billion including Rs 138 billion as budgetary support from the Government of India for the cost of enabling infrastructure. Ex-post facto approval is given for cumulative expenditure incurred amounting to Rs 2.46 billion till January 2023.

The project cost of Rs 26.14 billion included hard costs amounting to Rs 22.46 billion, Interest During Construction (IDC) and Financing Charges (FC) of Rs 3.58 billion and 91.5 million respectively. The revised cost sanctions for cost variations due to quantity changes (including additions/ alterations/ extra items) and time overruns due to the developer shall be capped at 10% of the sanctioned cost.

Keeping in view the aims and objectives of Atmanirbhar Bharat Abhiyan, the present proposal for setting up 382 MW Sunni Dam HEP by SJVN shall provide various benefits to local suppliers/ local enterprises/ MSMEs and shall encourage entrepreneurship opportunities within the country besides promoting employment and socio-economic development of the region. The implementation of the project shall generate direct & indirect employment for about 4,000 persons during the peak construction of the project.

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