NHPC, JKPDC To Execute Rs 5300 Crore Joint Venture
Jammu: The Jammu and Kashmir administrative council on Friday gave nod to the construction of 850 MW ratle hydroelectric project in a joint venture between the JK Power Development Corporation (JKPDC) and the National Hydroelectric Power Corporation (NHPC).
The Rs 5300 crore power project to come up in the Union Territory, was approved by the administrative council in its meeting here on Friday, an official spokesperson said. He said that the new joint venture company named-Jammu Hydroelectric Power Corporation Limited will be formed between the JKPDC and NHPC.
“The equity contribution of JKPDC in the company pegged at Rs. 776.44 crore will be provided as grant from the Government of India,” the official spokesperson said, adding “Today’s decisions will pave the way for an early beginning of work on the project. All the clearances for the project are already in place; hence the project is expected to be completed within 36 months of the start of work,”
The official spokesperson further said that the project would be a major developmental and financial benefit to J&K which would benefit from sale of power as well employment opportunities and other developmental benefits arising out of the project.
“Today’s decision regarding execution of 850 MW Ratle project will ensure that over 3000 MW additional generating capacity will be available to supplement the demand-supply position in J&K and boost the overall economy of the UT,” he said.
The Administrative Council, he said, also approved the exemptions to the project in order to make it viable.
“However, the accord of exemptions has also been restricted to the bare minimum necessary to obtain viability of the project. Accordingly exemption of the UT’s share of free power (12%) from the project was approved in a decremental manner only,” the official spokesperson said.
“The AC also ordered that the share of free power will be restored to the normal quota of 12% from the 12th year onwards. Approval for waiver of water usage charges (WUC) for the project for a period of 10 years from the first year of Commercial operation (CoD) of the Project as well as reimbursement of SGST by the Union Territory of Jammu and Kashmir for all supplies to the project was also accorded,” he added.
As per the official spokesperson, the Administrative Council also approved signing of the Supplementary MoU between JKPDD, Government of Union Territory of J&K and JKSPDCL with NHPC Limited for implementation of the project.
He said that the supplementary MoU would supplement and modify some of the provisions of the original MoU signed on Feb 3, 2019, among J&K Power Development Department, J&K State Power Development Corporation Limited and NHPC Limited regarding the execution of the project in joint venture mode.
“Yet the matter had remained pending due to a rethinking to execute the project on 100% ownership basis by NHPC instead of already agreed joint venture mode. The J&K Government had been consistently arguing for execution of the work in the joint venture mode as agreed in the Feb 2109 MoU,” the official spokesperson said.
“Finally, the contention of the Govt of J&K was accepted and the Public Investment Board (PIB) in its meeting held last month recommended execution of project in joint mode,” he added.
Divulging more details on power generation, the official spokesperson said that J&K has over 20,000 MW of hydro power potential, out of which 16000 MW has been identified.
“While the 1000 MW Pakal Dul project and 624 MW Kiru are already under execution by Chenab Valley Power Project Private Limited (CVPPL), a Joint Venture of JKSPDC, NHPC and PTC India limited, the 540 MW Kwar is likely to be taken up shortly,” he added.
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