Nirbhay Kumar
New Delhi: In a major boost to clean energy generation in the country, the Union cabinet on Wednesday cleared a Rs 5,282 crore hydro power project on Chenab river in the newly-carved out Union Territory of Jammu and Kashmir.
The 850 megawatt (MW) project would be built and operated by a new joint venture firm in which National Hydroelectric Power Corporation (NHPC) would hold majority 51% equity stake. The remaining 49% share will be held by Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC).
“Government of India is also supporting the Union Territory of Jammu and Kashmir 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). NHPC shall invest its equity Rs 808.14 crore from its internal resources,” an official statement said.
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 also improve the power supply position.
As per the approved plan, Government of Union Territory of Jammu and Kashmir will extend exemption from levy of water usage charges for 10 years after commissioning of the project and reimburse State’s share of GST to make the project viable.
With centre focusing on non-thermal power generation in the wake of environmental concerns, energy generation from hydro power plants has been on the rise in the last two years.
As per official figures, hydro power plants with annual generation capacity of 25 MW or more produced 143854.89 MU as against the target of 127164.00 MU in FY20 (till January).
Depending on various factors, unit cost of generating hydro power could be lower than coal-based power. In 2019-20, the average cost of per unit power generation by hydro power leader NHPC was Rs 3.30. As against this, central power generation giant NTPC produced thermal power at an average cost of Rs 3.79 per unit.
Ever since the Modi government bifurcated the state of J&K by abrogating Article 370 of the Constitution, developmental projects have been cleared in an expeditious manner. The proposal to set up the new hydro power project is set to aid development in the region.
“The construction activities of the project will result in direct and indirect employment to around 4,000 persons and will contribute in overall socio-economic development of the Union Territory of Jammu and Kashmir,” the official statement said.
It further added that the Union Territory of Jammu and Kashmir will be benefitted by getting free power worth Rs 5,289 crore and through levy of Water Usage Charges worth Rs9581 crore from Ratle Hydro Electric Project during project life cycle of 40 years.