In a significant decision the J&K Administrative Council in its meeting on Friday approved the proposal for development of 850 MW Rattle Hydroelectric Project in Joint Venture Mode by NHPC and JKSPDC.
The Rs 5,300 crore project would be executed by a new Joint Venture Company-Jammu Hydroelectric Power Corporation Limited to be formed between the JK Power Development Corporation (JKPDC) and the National Hydroelectric Power Corporation (NHPC).
The equity contribution of JKPDC in the company pegged at Rs 776.44 crore will be provided as grant from the Government of India.
“The decisions will pave the way for an early beginning of work on the project. All the clearances for the project are already in place; hence the project is expected to be completed within 36 months of the start of work,” an official statement said.
“With the equity contribution of J&K being made available as a grant and with the project being executed in JV mode, the project would be a major developmental and financial benefit to J&K which would benefit from sale of power as well employment opportunities and other developmental benefits arising out of the project.”
The Administrative Council has also approved the exemptions to the project in order to make it viable. However, the accord of exemptions has also been restricted to the bare minimum necessary to obtaining viability of the project.
Accordingly exemption of the UT’s share of free power (12%) from the project was approved in a decremental manner only.A