–Cabinet approves the Investment Proposal of Rs. 5281.94 crore for 850 MW Ratle Hydro Power Project
The Union Cabinet has given its approval to the new Joint Venture Company (JVC) for an investment of Rs.5281.94 crore in the 850 MW Ratle Hydro Electric (HE) Project. The project is located on river Chenab, in Kishtwar district of Union Territory (UT) of Jammu and Kashmir (J&K) and will be commissioned within 60 months.
- The life cycle of the project will be 40 years.
- The new JVC will be incorporated between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with equity contributions of 51% and 49% respectively.
- The project will improve the power supply position in J&K.
Key Points:
–The equity contribution of JKSPDC worth Rs 776.44 crore in JVC for the project will be provided as grant from the Government of India (GoI) while NHPC’s will infuse equity share worth Rs 808.14 Crore from its internal resources.
–There would be free power in J&K worth Rs. 5289 crore during the project life cycle. It would be 1% in the 1st year after commissioning of the Project and rising @1% per year to 12% in the 12th year.
–The Union Territory (UT) will also be exempted from Water Usage Charges worth Rs.9581 crore for 10 years after commissioning of the project.
Additional Info:
–J&K has over 20,000 MW of hydro power potential, out of which 16,000 MW has been identified.
–Already 1,000 MW Pakal Dul project on river Marusudar, a tributary of Chenab river and 624 MW Kiru Hydro Electric Project on river Chenab are under execution by Chenab Valley Power Project Private Limited (CVPPL), a Joint Venture of JKSPDC, NHPC and PTC India limited
–A 540 MW Kwar Hydro Electric Project on river Chenab is also likely to be taken up shortly.
About National Hydroelectric Power Corporation (NHPC):
It is Mini Ratna Category-I Public Sector Undertaking (PSU).
Chairman & Managing Director (CMD)– Abhay Kumar Singh
Headquarter– Faridabad, Haryana
Cabinet Approval with Other Countries
–Cabinet approves signing of MoU between India and Uzbekistan for cooperation in Solar Energy
The Union Cabinet approved the signing of Memorandum of Understanding (MoU) between India and Uzbekistan for cooperation in the Solar Energy sector.
- The entities included in this project are National Institute of Solar Energy (NISE), Ministry of New & Renewable Energy, India and the International Solar Energy Institute (ISEI), Uzbekistan.
Key Points:
–Both organizations will identify research/demonstration/pilot projects in the identified areas of Solar Photovoltaic, Storage Technologies, and Transfer of Technology.
–The will also work towards the implementation of pilot projects in International Solar Alliance (ISA) member countries.
Other Energy Agreements of India with different countries:
–In June 2020, India and Denmark had signed MoU on Indo-Denmark Energy Cooperation in the power sector.
— In January 2020, the Cabinet had approved the MoU between India and France on technical bilateral cooperation in new and renewable energy.
–In April 2019, India and Denmark signed a Cooperation Agreement in the field of Renewable Energy with a focus on Offshore Wind Energy.
About Uzbekistan:
Capital– Tashkent
Currency– Uzbekistani soʻm
President– Shavkat Miromonovich Mirziyoyev
Recent Related News:
i.On December 14, 2020, The First Trilateral Working Group (TWG) meeting was held virtually between India, Iran & Uzbekistan to discuss the joint use of Chabahar port in Iran to increase regional connectivity within the 3 countries. The Indian side was represented by Sanjeev Ranjan, Secretary (Shipping).
ii.On December 12, 2020, Export-Import Bank of India (Exim Bank), on behalf of the Government of India, has extended a Line of Credit (LOC) of $448 million to the Government of Republic of Uzbekistan for financing the latter’s various projects in the Roads & Transport, Water and Technology & Communication sectors.
