- Proposal of Rs. 5281.94 crore was granted for approving the construction of the 850 MW Ratle Hydro Power Project.
- Rs. 776.44 crore is also grated u the Union Government to Jammu ad Kashmir as an equity contribution to JKSPDC.
- The hydro project is deceived to be commissioned within a 60 months period.
- The Water Usage Charges will be exempted by the Government of Jammu and Kashmir for making the project viable.
The Prime Minister, Narendra Modi along with the Union Cabinet approved the investment of Rs. 5281.94 crore for construction of 850 MW Ratle Hydro Electric Projected over Chenab river, in the Kishtwar district of Jammu and Kashmir. The project will be developed by a new Joint Venture Company that is decided to be incorporated between Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with the equity contribution of 51% and 49% respectively.
The Union Territory of Jammu and Kashmir is also being supported by the Union Government with a grant of Rs. 776.44 crore as the Equity support to JKSPDC in the JVC which is supposed to set up for the construction of the Ratle HE Project. It is also reported that NHPC will invest its part of the equity of Rs. 808.14 crore from the internal resources. It s decided to commission the Ratle Hydro Electric Project within 60 months time. It is speculated that the generated power will balance the Grid and improve the power supply position.
The Union Territory of Jammu and Kashmir has the plan to make the project viable and for that, it will extend the exemption of Water Levy charges for 10 years following the commissioning of the project. The share of GST which belonged to the state will be refunded in a decremental manner, which means in the 1st year after commissioning the free power of Jammu and Kashmir will be 1% and it will increase 1% every year, thus concluding in 12% in the 12th Year.
The construction and development of such a huge project will facilitate the employment of around 40,000 persons and will help socio-economic development as a whole. A free power worth fo Rs. 5289 crore will be benefited to the Union Territory of Jammu and Kashmir. The levy of Water Charges worth Rs. 9581 crore will benefit Ratle Hydro-Electric Power for a life span of 40 years.