Jammu, Mar 17 (PTI) The Jammu and Kashmir administration on Wednesday approved incorporation of a joint venture company (JVC) Ratle Hydro-electric Power Corporation to implement the 850 MW Ratle Hydro-Electric Project (HEP) on river Chenab in Kishtwar district of the union territory. It was approved by the Administrative Council (AC), which met here under the chairmanship of Lieutenant Governor Manoj Sinha.
The proposed JVC will have authorised capital of Rs 1,600 crore with initial paid up capital of Rs 100 crore, out of which the JKSPDCL will contribute Rs 49 crore as initial equity, an official spokesman said.
The Memorandum of Understanding (MoU) to execute the project was signed between the government of Jammu & Kashmir, JKSPDCL and NHPC on January 3 this year in the presence of the Lieutenant Governor and union minister of state for power.
On the basis of the MoU already signed, the Administrative Council approved the Promoters' Agreement for the JVC between the Government of J&K, NHPC and J&K State Power Development Corporation Ltd (JKSPDCL), the spokesman said.
The AC further authorised the Principal Secretary, Power Development Department and the Managing Director, JKSPDCL to sign the Promoters' Agreement and other related documents for operationalisation of the JVC.
The JVC will develop the 850 MW Ratle HEP at an estimated cost of Rs 5,281.94 crore.
Ratle HEP is a run-of-the-river project on river Chenab in Kishtwar district. It lies between the Dulhasti HEP on its upstream and the Baglihar HEP on its downstream, the spokesman said.
'Once completed, it will substantially add to the power generation capacity of Jammu and Kashmir, provide financial and developmental benefits, and enable effective use of western rivers under the Indus Water Treaty,' he said.
In September 2018, the State Administrative Council (SAC) had approved formation of a joint venture (JV) between the Centre and the state government for development of the 850 MW Ratle HEP.
The HEP was to be transferred to the state within a period of seven years from the start of commercial operation of the project. The sanction was accorded in a meeting of the SAC chaired by the then Governor Satya Pal Malik here.
In October 2020, the Public Investment Board (PIB) 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.
The PIB, in the Union Ministry of Finance, 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 equity contribution of JKPDC in the company pegged at Rs 776.44 crore will be provided as grant from the Centre. PTI AB ABM ABM