New Delhi, Jan 20 Union Cabinet, chaired by Prime Minister Narendra Modi on Wednesday gave its approval for the investment of Rs.5281.94 crore for 850 MW Ratle Hydro Electric (HE) Project located on river Chenab, in Kishtwar district of Union Territory of Jammu and Kashmir.
This new Joint Venture Company (JVC) to be incorporated between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with equity contribution of 51 percent and 49 percent respectively.
The Centre has also been supporting the J&K Government by providing grant of Rs 776.44 crore for equity contribution of JKSPDC in the JVC to be set up for construction of Ratle HE Project (850 MW) while the NHPC shall invest its equity Rs 808.14 crore from its internal resources.
The Ratle Hydro Electric Project shall be commissioned within a span of 60 months. The Power generated from the Project will help in providing balancing of Grid and will improve the power supply position.
The construction activities of the Project will result in direct and indirect employment to around 4000 persons and will contribute in overall socio-economic development of the Union Territory of Jammu and Kashmir.
Further, UT Government will be benefited by getting free power worth Rs 5289 crore and through levy of water usage charges worth Rs 9581 crore from Ratle Hydro Electric Project, during project life cycle of 40 years.
