Rs 50,000 cr investment, 12000 jobs to be generated: Thakur
Project to be commissioned in 54 months: Dr Jitendra
Sanjeev Pargal
JAMMU, Apr 27: Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi today approved an investment of Rs 4526.12 crore for construction of Kwar hydro electric project over river Chenab in Kishtwar district which will be completed in 54 months and will generate 1975.54 Million Units in a 90 percent dependable year.
The project will be executed by M/s Chenab Valley Power Projects Private Limited (CVPPL), a joint venture company between National Hydro-electric Power Corporation (NHPC) and Jammu Kashmir State Power Development Corporation (JKSPDC).
“Cabinet under Prime Minister Narendra Modi approves construction of 540 Mega Watt Kwar Hydro Electric project. It will generate 1975 Million Units of electricity and will be commissioned in 54 months,” Union Minister of State in the Prime Minister’s Office (PMO) Dr Jitendra Singh tweeted after the CCEA meeting.
Dr Jitendra Singh extended thanks to the Prime Minister for clearing the project.
During his visit to Jammu on April 24, Modi had laid foundation stone of Ratle and Kwar hydro electric power projects to be constructed over river Chenab in Kishtwar district besides inaugurating and laying foundation of many other projects virtually from Palli Gram Panchayat in Samba district.
Addressing a press conference after the CCEA meeting, Union Minister for Information and Broadcasting, Sports and Youth Affairs Anurag Thakur said Kwar is fourth hydro-electric power project to be cleared by the Cabinet after Kiru, Pakal Dul and Ratle which will together generate 3000 MW electricity in J&K .
“The projects have been cleared at total cost of Rs 23,000 crore and will generate 12,000 jobs,” Thakur said.
Construction of these projects will also lead to social and economic development, he added.
The Union Minister said Sawlakote and Kirthai-II power projects are also under consideration which will generate 2800 MW power supply and will lead to investments worth Rs 28,000 crore.
“The power projects will have total investment of Rs 50,000 crore. With this, Jammu and Kashmir will become power surplus and can generate revenue by selling electricity to other States,” Anurag Thakur said, adding J&K will become Atmanirbhar in electricity after construction of the power projects.
An official statement said the Cabinet Committee on Economic Affairs has approved the investment of Rs.4526.12 crore for 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab, in Kishtwar district of Union Territory of Jammu and Kashmir.
The project will be implemented by M/s Chenab Valley Power Projects Private Limited, a joint venture company between NHPC and JKSPDC with equity contribution of 51% and 49% respectively.
The project shall generate 1975.54 Million Units in a 90% dependable year, the statement said.
“Government of India is extending grant of Rs.69.80 crore towards cost of enabling infrastructure and also supporting the Union Territory of Jammu & Kashmir by providing grant of Rs.655.08 crore for equity contribution of JKSPDC (49%) in CVPPPL,” it added.
The statement said the NHPC shall invest its equity (51%) of Rs.681.82 crore from its internal resources. The Kwar Hydro Electric Project shall be commissioned with a span of 54 months.
The Power generated from the Project will help in balancing of Grid and will improve the power supply position.
Government of UT of J&K to make the Project viable, extending 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 @2% per year in a decremental manner, i.e. the free power to the Union Territory of Jammu & Kashmir would be 2% in the 1st year after commissioning of project and thereafter shall increase @2% per year and shall be 12% from 6th year onwards, the statement further said.
The construction activities of the project will result in direct and indirect employment to around 2500 persons and will contribute in overall socio-economic development of the Union Territory of J&K, it added.
Further, UT of J&K 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, during project life cycle of 40 years.
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