Cabinet approves 540 MW Kwar Hydro Electric project in J&K

The project is expected to  generate 1975.54 million units of electricity and provide 2500 jobs in Jammu & Kashmir  

The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi,  has approved the investment of ₹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 (M/s. CVPPL) a joint venture company between NHPC and JKSPDC with  equity contribution of 51 percent and 49 percent respectively.

The project shall generate 1975.54 million units in a 90 percent dependable year.

Government of India is extending grant of ₹69.80 crore towards cost of Enabling Infrastructure and also supporting the Union Territory of Jammu & Kashmir by providing grant of ₹655.08 crore for Equity contribution of JKSPDC (49 percent) in M/s. CVPPPL.  NHPC shall invest its equity (51 percent) of ₹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 form 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 at 2 percent per year in a decremental manner, i.e. the free power to the Union Territory of Jammu & Kashmir would be 2 percent in the 1st year after commissioning of Project and thereafter shall increase at 2 percent per year and shall be 12 percent from 6th year onwards.

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.  Further, UT of J&K will be benefited of Jammu & Kashmir with free power of around ₹4,548.59 crore and ₹4,941.46 crore with Water Usage Charges from Kwar Hydro Electric Project, during project life cycle of 40 years.