Govt approves construction of 540 Megawatt Kwar Hydro Electric project
New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, today approved a Rs.4526.12 crore investment in the 540 megawatt (MW) Kwar Hydro Electric Project, which is located on the Chenab River in the Union Territory of Jammu and Kashmir’s Kishtwar region.
M/s. Chenab Valley Power Projects Private Limited (M/s. CVPPL) will implement the project, which is a joint venture between NHPC and JKSPDC with equity contributions of 51 percent and 49 percent, respectively, as of April 27, 2022.
In a 90 percent reliable year, the project will produce 1975.54 million units.
Kwar Hydro Electric project
The Indian government is providing a grant of Rs.69.80 crore towards the cost of Enabling Infrastructure, as well as supporting the Union Territory of Jammu & Kashmir with a grant of Rs.655.08 crore for JKSPDC’s (49 percent) equity contribution in M/s. CVPPPL. NHPC will use its internal resources to invest Rs.681.82 crore in its equity (51 percent). The Kwar Hydro Electric Project is expected to be completed in 54 months. The power generated by the project will contribute to grid balancing and enhance the power supply situation.
To make the project viable, the Government of the Union Territory of Jammu and Kashmir has extended an exemption from the levy of Water Usage Charges for ten years after commissioning, reimbursement of the State’s share of GST (i.e. SGST), and waiver of free power @2% per year in a decremental manner, i.e. the free power to the Union Territory of Jammu and Kashmir will be 2% in the first year after commissioning of the project and thereafter shall increase.
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