NEW DELHI, Sep 10:
The Cabinet today cleared Rs 8,112.12 crore investment for state-run NHPC’s Pakal Dul Hydroelectric Project in Jammu & Kashmir, which will help in reducing power shortage in the northern region.
“Investment of Rs 8,112.12 crore for construction of the (4×250 MW) Pakal Dul Hydroelectric Project has been approved,” an official statement said.
The project would help in reducing the power shortage in the northern region and partly to utilize storage provisions of the Indus Water Treaty. It would also help in the socio-economic upliftment of remote areas of J&K.
This investment includes Interest During Construction (IDC) and Financing Charges (FC) of Rs 500.76 crore. It also includes subordinate debt of Rs 2,500 crore on the conditions and waivers of the Government of J&K in a scheduled completion period of 66 months.
Subordinate debt is owed to an unsecured creditor that in the event of a liquidation can only be paid after the claims of secured creditors have been met.
The Cabinet also cleared infusion of equity upto Rs 1,605 crore by NHPC in Chenab Valley Power Projects Private Limited (CVPPL) for construction of the Pakal Dul (1000 MW) and for initial investment in Kiru (660 MW) and Kwar (560 MW) hydro electric projects.
Another proposal was approved for formation and incorporation of CVPPL, a Joint Venture between NHPC (49 per cent), J&K State Development Corporation (JKSPDC) (49 per cent) and PTC (2 per cent).
The Joint Venture partners will arrange equity by their internal resources. The Government of J&K has sanctioned exemption from Work Contract Tax or entry tax and waiver of free power and water user charges for a period of ten years from the completion of the project.
The Government of J&K shall purchase 49 per cent of power from the project. The remaining power will be allocated to the constituent states in the northern region excluding Himachal Pradesh.
Himachal Pradesh has refused to purchase power due to less requirement. (AGENCIES)
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