At Rs. 8,848 crore, 4X250 MW Pakal Dul HEP will be one of the most expensive hydro power projects in the country and this will eventually push up the tariff rates, thus making the task of finding buyer for the power very difficult. The cost of the project was originally estimated at Rs. 3,480 crore in 2003. However, delay in securing approvals has thrown the schedule haywire and also has pushed up project cost sky high. Now the government is trying to find ways and means to bring down the cost to reasonable level. One way this is being sought to be done is by extending a subordinate loan of Rs. 2,500 crore to the project from the central government. The PIB has also suggested that the government of Jammu & Kashmir should waive off the entry tax & water cess. Also, the state government has been asked to waive the supply of free power to for a period of 10 years. The ministry is also in dialogues with the L-1 consortium which has bagged the project to reduce the package cost so that the tariff for the project can be whittled down.


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