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Cabinet nod for construction of 540 MW Kwar Hydro Electric project

Thursday, 28 Apr 2022
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The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister, Narendra Modi, has approved an investment of Rs 4,526.12 crore for 540 MW Kwar Hydro Electric Project located on river Chenab in Kishtwar district of Union Territory of Jammu and Kashmir. 
 
The project will be implemented by Chenab Valley Power Projects (CVPPL), a joint venture (JV) company between NHPC and JKSPDC with equity contribution of 51 percent and 49 percent respectively. 
 
The project shall generate 1975.54 million units in a 90 percent dependable year.
 
The Centre is extending grant of Rs 69.80 crore towards cost of enabling infrastructure and also supporting the Union Territory by providing grant of Rs 655.08 crore for equity contribution of JKSPDC (49 percent) in CVPPPL.  
 
NHPC shall invest its equity 51 percent of Rs 681.82 crore from its internal resources. The Kwar Hydro Electric Project shall be commissioned with a span of 54 months. 
 
The power generated from the project will help in balancing of grid and will improve the power supply position. The construction activities of the project will result in direct and indirect employment to around 2,500 persons. 
 
Further, the Union Territory will be benefitted with free power of around Rs 4,548.59 crore and Rs 4,941.46 crore with water usage charges from Kwar Hydro Electric Project, during project life cycle of 40 years.
 
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