The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi today approved an investment of Rs.4526.12 crore to construct the 540 Megawatt (MW) Kwar Hydro Electric Project on river Chenab, in Kishtwar district of Union Territory of Jammy and Kashmir.
The project will be implemented by M/s. Chenab Valley Power Projects Private Limited a joint venture company between NHPC and JKSPDC with equity contribution of 51% and 49% respectively on 27.04.2022.
The project will generate 1975.54 million units in a 90% dependable year.
The construction activities of the project will result in direct and indirect employment to around 2500 persons and will contribute in overall socio-economic development of the Union Territory of J&K. Further, UT of J&K will be benefitted of Jammu & Kashmir 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.
Government of India is extending a grant of Rs.69.80 crore towards cost of Enabling Infrastructure and also supporting the Union Territory of Jammu & Kashmir by providing a grant of Rs.655.08 crore for Equity contribution of JKSPDC (49%) in M/s. CVPPPL. NHPC will invest its equity (51%) of Rs.681.82 crore from its internal resources. The Kwar Hydro Electric Project will be commissioned within 54 months.