Public Investment Board (PIB) has recommended NHPC to revise the 70:30 debt-equity ratio for 1000 MW Pakal Dul hydroelectric project. The project is being executed by Joint Venture Company called Chenab Valley Power Projects Private Limited (CVPPPL), with equity participation of 49 per cent, 49 per cent and 2 per cent by NHPC, JKSPDC and PTC respectively. In the PIB meeting held to discuss NHPC’s equity participation the project, the Board stated that the equity amount is high and hence the debt-equity ratio must be revised.
Further, the Board has also asked the Jammu & Kashmir government to consider ways to reduce land cost and incidence of taxes. In this regard, the Joint Venture Company has requested the Principle Secretary of J&K for taking necessary action. The PIB also stated that efforts must be made to reduce the completion period, proposed to be 6 years at present.
Pakal Dul hydroelectric project has been appraised by Central Electricity Authority at an estimated cost of Rs. 8847.81 crore. The project has also secured environment and forest clearances. PIB’s approval of Joint Venture Company and NHPC’s equity participation in the project is one of the major constraints in project development.
Meanwhile, J&K government has also requested for Central grant for funding its equity portion in the project. At 70:30 debt-equity ratio, equity contribution of JKSPDC and NHPC would be Rs. 1300 crore each.
Pakal Dul hydroelectric project is a storage project on River Marusudar, a tributary of River Chenab. The project envisages construction of four units of 250 MW each and expects to generate 3228.41 million units of power in a 90 per cent dependable year. The land acquisition for the project is expected to be completed by this month.
