India’s JK Power Development (JKPDC) and National Hydroelectric Power (NHPC) will form a joint venture to build the 850MW Ratle hydroelectric power project in Jammu and Kashmir.
In announcing the venture, India’s Public Investment Board reportedly suggested it would approve a $721m (Rs52.81bn) investment in the project, PTI reported. This includes a joint-venture investment of $110m (Rs8.08bn) by NHPC.
A PIB spokesperson was quoted by the news agency as saying: “The recommendations of the PIB will pave the way for final approval of the project and an early beginning of work on 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 area from its abundant hydro resources.”
Additionally, the Government of India will provide JKPDC’s investment of $106m (Rs77.6bn) in the joint venture.
It is reported that the Jammu and Kashmir region has a potential hydropower capacity of more than 20GW. Currently 16GW capacity has been identified in the region. This investment decision will increase the area’s hydropower capacity by nearly 2.5GW.
A PIB spokesperson added: “Now that the decks have been cleared for the 850MW Ratle project to develop after the incorporation of the joint venture company, an additional 3GW will be available to supplement the demand-supply position and boost the overall economy of the area.”