Cabinet approves Rs. 5281.94 crore investment Hydro Power Project Proposal, creates 4000 jobs
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi, has given its approval for the investment of Rs.5281.94 crore for 850 MW Ratle Hydro Electric (HE) Project located on river Chenab, in Kishtwar district of Union Territory of Jammu and Kashmir, by a new Joint Venture Company (JVC) to be incorporated between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with equity contribution of 51% and 49% respectively.
Government of India is also supporting the Union Territory of Jammu and Kashmir by providing grant of Rs. 776.44 crore for Equity contribution of JKSPDC in the JVC to be set up for construction of Ratle HE Project (850 MW). NHPC shall invest its equity Rs.808.14 crore from its internal resources. The Ratle Hydro Electric Project shall be commissioned within a span of 60 months. The Power generated from the Project will help in providing balancing of Grid and will improve the power supply position.
Government of Union Territory of Jammu and Kashmir, to make the Project viable, will extend exemption from levy of Water Usage Charges for 10 years after commissioning of the project, reimbursement of State’s share of GST (i.e. SGST) and waiver of free power to the Union Territory of Jammu and Kashmir in a decremental manner, i.e., the free power to the Union Territory of Jammu and Kashmir would be 1% in the 1st year after commissioning of the Project and rising @1% per year to 12% in the 12th year.
The construction activities of the Project will result in direct and indirect employment to around 4000 persons and will contribute in overall socio-economic development of the Union Territory of Jammu and Kashmir. Further, Union Territory of Jammu and Kashmir will be benefitted by getting free power worth Rs. 5289 crore and through levy of Water Usage Charges worth Rs.9581 crore from Ratle Hydro Electric Project, during project life cycle of 40 years.