In a significant decision the J&K Administrative Council in its meeting approved the proposal for development of 850 MW Rattle Hydroelectric Project in Joint Venture Mode by NHPC and JKSPDC.
The Rs 5300 crore project would be executed by a new Joint Venture Company-Jammu Hydroelectric Power Corporation Limited to be formed between the JK Power Development Corporation (JKPDC) and the National Hydroelectric Power Corporation (NHPC).
The equity contribution of JKPDC in the company pegged at Rs. 776.44 crore will be provided as grant from the Government of India.The Administrative Council also approved the exemptions to the project in order to make it viable. However, the accord of exemptions has also been restricted to the bare minimum necessary to obtaining viability of the project.
Accordingly exemption of the UT’s share of free power (12%) from the project was approved in a decremental manner only. The AC also ordered that the share of free power will be restored to the normal quota of 12% from the 12th year onwards. Approval for waiver of water usage charges (WUC) for the project for a period of 10 years from the first year of Commercial operation (CoD) of the Project as well as reimbursement of SGST by the Union Territory of Jammu and Kashmir for all supplies to the project was also accorded.
J&K has over 20,000 MW of hydro power potential, out of which 16000 MW has been identified. While the 1000 MW Pakal Dul project and 624 MW Kiru are already under execution by Chenab Valley Power Project Private Limited (CVPPL), a Joint Venture of JKSPDC, NHPC and PTC India limited, the 540 MW Kwar is likely to be taken up shortly.
