CVPPL to implement the project over 54 months
The Cabinet Committee on Economic Affairs has approved Rs.4,526.12 crore investment for 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab, in Kishtwar district of Union Territory of Jammy and Kashmir.
The project will be implemented by Chenab Valley Power Projects Private Limited (CVPPL) a joint venture company between NHPC and JKSPDC with equity contribution of 51% and 49% respectively on 27 April 2022.
The Indian Government 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.
NHPC will invest Rs.681.82 crore for 51% from its internal resources.
The Kwar Hydro Electric project, designed to generate 1,975.54 million units in a 90% dependable year, will 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.
The Government of UT of J&K, to make the Project viable, is extending exemption form levy of Water Usage Charges for 10 years after commissioning of the project, reimbursement of State’s share of GST (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.
Jammu & Kashmir will benefit from free power of around Rs.4,548.59 crore and Water Usage Charges of Rs.4,941.46 crore from Kwar Hydro Electric Project during project life cycle of 40 years. fiinews.com
