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Budget News

  • Cabinet Approves Investment Proposal Of Rs 5281.94 crore For 850 MW Ratle Hydro Power Project
  • January 21,2021  08:55

  • The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has given 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, by a 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% and 49% respectively. The 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. 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.

    Government of Union Territory of Jammu and Kashmir, to make the Project viable, will extend exemption from 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 to the Union Territory of Jammu and Kashmir in a decremental manner, i.e., the free power to the Union Territory of Jammu and Kashmir would be 1% in the 1st year after commissioning of the Project and rising @1% per year to 12% in the 12th year.

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