The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the investment sanction for construction of Kiru Hydro Electric Project by Chenab Valley Power Projects Private Limited in Jammu & Kashmir.
The decision was taken at the meeting headed by Prime Minister Narendra Modi.
The project will be implemented at an estimated cost of Rs 4,287.59 crore (at July, 2018 price level) which includes Interest During Construction (IDC) and Foreign Component (FC) of Rs 426.16 crore and infusion of equity of Rs 630.28 crore by NHPC in CVPPPL for construction of Kiru HE Project (624 MW).
Earlier, the Cabinet had approved Rs 70 crore for pre-construction activities.
CVPPPL is a joint venture company amongst NHPC, Jammu & Kashmir State Power Development Corporation (JKSPDC) and PTC with equity shareholding of 49 per cent, 49 per cent and two per cent, respectively.
The project, located on river Chenab in Kishtwar district of Jammu & Kashmir, shall provide much-needed power in northern grid and shall accelerate process of development of remote areas of Jammu and Kashmir.
It is scheduled to be completed in a period of 4.5 years.