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Cabinet approves Rs 5,282 cr to revive J&Ok hydro challenge

The Cabinet, on Wednesday, additionally authorised the signing of memorandum of understanding between India and Uzbekistan for cooperation within the discipline of photo voltaic vitality.

The Cabinet on Wednesday authorised an funding of Rs 5,282 crore in constructing the 850 mega watt (MW) Ratle hydro-electric challenge on the Chenab river in Jammu and Kashmir, signalling the Centre’s renewed efforts to spice up investments within the militancy-infested valley. The challenge can be collectively developed by the National Hydroelectric Power Corporation (NHPC) and Jammu and Kashmir State Power Development Corporation (JKSPDCL), with fairness contributions of 51% and 49%, respectively.

The Centre will present a grant of Rs 776.44 crore to JKSPDCL for its fairness contribution within the enterprise. NHPC will make investments its Rs 808.14-crore fairness from its inside assets. Secunderabad-based GVK Industries was earlier awarded the challenge growth contract for the Ratle hydro plant and JKSPDCL had signed an influence buy settlement (PPA) with the corporate in June, 2010. Former Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi had laid the inspiration stone for the Ratle challenge in 2013.

However, development work was suspended on the challenge website as a consequence of frequent native disturbances since July, 2014 and the Jammu and Kashmir authorities had terminated the PPA in February 2017. Out of the 1,024 metres of tunnel excavations wanted for the challenge, 490 metres have already been dug out.

To make the challenge viable, Jammu and Kashmir will exempt it from paying water utilization prices for 10 years after commissioning. The Union territory may even partly forego the 12% free energy that host states of hydro energy vegetation usually obtain. Jammu and Kashmir will get 1% free energy within the first yr, step by step rising to obtain 12% free energy within the twelfth yr.

The Centre expects Jammu and Kashmir to get free energy value Rs 5,289 crore and water utilization prices value Rs 9,581 crore from the hydro challenge throughout its challenge life cycle of 40 years. The Cabinet, on Wednesday, additionally authorised the signing of memorandum of understanding between India and Uzbekistan for cooperation within the discipline of photo voltaic vitality.

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