Jammu & Kashmir State government has requested for Central grant for financing the Jammu & Kashmir State Power Development Corporation’s (JKSPDC) equity portion of 1000 MW Pakal Dul hydroelectric project. The project is being executed by Joint Venture Company called Chenab Valley Power Projects Private Limited, with equity participation of 49 per cent, 49 per cent and 2 per cent by NHPC, JKSPDC and PTC respectively.
The project received techno-economic clearance at an estimated cost of Rs. 8847.81 crore. With respect to the equity participation in the JVC, contribution of JKSPDC would be Rs. 1300 crore in Pakal Dul HEP based on debt-equity ratio of 70:30.
State government has mentioned that the project was to be executed by NHPC as part of Prime Minister’s Rehabilitation Programme. However, since the project is being executed as a joint venture now, State has requested for consideration of the grant. The State government will send the proposal to the Planning Commission on suggestion of the Cabinet Secretariat. The State government has also been suggested to send the copy of the proposal to the power ministry and finance ministry.
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. It is expected to generate 3330 million units every year and is scheduled to be completed in six years from the date of investment sanction.
The land acquisition for the project is expected to be completed by August 2013. The work on the project is expected to pick up pace after completion of land acquisition since all statutory clearances for the project are in place and have been transferred to the Joint Venture Company by NHPC.