Decks cleared for 850 MW Ratle hydroelectric project in JK

The Public Investment Board (PIB) has recommended that the 850-MW Ratle hydroelectric power project be developed through a joint venture company of the JK Power Development Corporation and the National Hydroelectric Power Corporation, an official spokesperson said.

The PIB, in the Union Ministry of Finance, has also recommended an investment approval for Rs 5,281.94 crore for the project, including an infusion of equity of Rs 808.14 crore by NHPC in the JVC, the spokesperson said.

The equity contribution of JKPDC in the company pegged at Rs 776.44 crore will be provided as grant from the Centre.

"The recommendations of the PIB will pave the way for final approval of the project and an early beginning of work on the project," the spokesperson said.

It may be recalled that Ratle was the first project in India which was awarded through tariff-based bidding, the spokesperson said. However, the project was stalled due to the unilateral withdrawal by the erstwhile developer from the project.

"All the clearances for the project are already in place and the project is expected to be completed within 36 months of the start of work. The initiation of the project will be yet another step in adding to the revenues of the UT from its abundant hydro resources," he added.

J&K has over 20,000 MW of hydropower potential, out of which 16,000 MW has been identified. With the PIB decision, J&K would have moved another step closer to harnessing nearly 2,500 MW of this potential, he said.

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"Now that the decks have been cleared for the 850 MW Ratle project too to come up after incorporation of joint venture company i.E Jammu Hydroelectric Power Corporation Limited, an additional 3000 MW will be available to supplement the demand-supply position in J&K and boost the overall economy of the UT," he said.