The 540 MW Kwar Hydroelectric Project on the Chenab River in the Kishtwar district of Jammu and Kashmir has received Centre approval for Rs 4,526.12 crore.
Union Information and Broadcasting (I&B) Minister Anurag Thakur told the media that the decision was made at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.
“The Cabinet has approved the construction of the 540 MW Kwar Hydroelectric Project at a cost of Rs 4,526.12 crore,” the minister said.
In a year, the project will generate 1,975.54 million units of electricity with 90% reliability. He added that it will be commissioned in 54 months by the National Hydroelectric Power Corporation (NHPC) and the J&K State Power Development Corporation (JKSPDC).
Chenab Valley Power Projects would implement the project, which would employ approximately 2,700 people directly and indirectly (CVPPPL).
It is a joint venture between the NHPC (51 per cent) and JKSPDC (49 per cent), formed at the initiative of the Jammu and Kashmir administration and the Centre to harness the vast hydro potential of the Chenab. The business was founded on June 13, 2011.
It has been entrusted with the construction of hydropower projects with a total installed capacity of 3,094 MW on a build, own, operate, and maintain (BOOM) basis.
The Centre will provide a grant of Rs 69.80 crore for the cost of enabling infrastructure, as well as support the Union Territory with a grant of Rs 655.08 crore for JKSPDC’s (49%) equity contribution in CVPPPL. From its own funds, the NHPC will invest Rs 681.82 crore.
During the project’s 40-year life cycle, the Union Territory will receive free electricity worth Rs 4,548.59 crore.