Context:
REC Limited, a leading NBFC under the Ministry of Power, has entered into an agreement with Chenab Valley Power Project Private Limited (CVPPPL).
More on the news:
- This agreement involves REC providing financial assistance of ₹1,869.265 crores to CVPPPL as a Term Loan.
- The loan amount will be used for the development, construction, and operation of the Kiru Hydro Electric Project.
About Kiru Hydro Electric Project:
- This project is a run-of-river scheme.
- It is proposed on river Chenab in district Kishtwar of Union Territory of J&K and is about 42 kms from Kishtwar.
Chenab River
- The Chenab River is a key river in both India and Pakistan.
- It is one of the five main rivers in the Punjab region
- Origin: Lahaul valley, Himachal Pradesh
- Formation: Chandra and Bhaga streams merge
- Length: 504 km in India
- Main Tributaries: Marusudar, Thirot, Sohal, Bhut nallah, Liddrari, Kalnai, Neeru, Raghi, Bichleri, Ans
- Catchment Area: 29,050 Sq. Km. up to the international border; 21,808 Sq. Km. up to Akhnoor
- Economic Potential: Estimated at 3600 MW (firm) & installed capacity of 11,400 MW
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- It has a total capacity of 624 MW
- Objective: To increase power generation capacity by using the energy potential of Chenab River.
- Type of Dam: Concrete gravity.
- It includes the construction
- A dam with a height of 135 meters
- An underground Power House equipped with 4 units, each generating 156 MW.
About Chenab Valley Power Projects Private Limited
- Objective: To use the hydro potential of the Chenab River.
- It is a joint venture between NHPC (51%) and JKSPDC (49%), created by the Indian and J&K governments.
- Project Portfolio:
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- CVPPPL is responsible for several hydroelectric projects:
- Kiru Hydro Electric Project (624 MW)
- Pakal Dul Hydro Electric Project (1000 MW)
- Kwar HydroElectric Project (540 MW)
- Kirthai-II Hydro Electric Project (930 MW)
- These projects operate on a Build, Own, Operate, and Maintain (BOOM) basis.
- Combined, these projects have a capacity of 3094 MW.
Impact on the Indian economy
The agreement between REC Limited and Chenab Valley Power Project Private Limited (CVPPPL) is likely to have a positive impact on the Indian economy in a few ways:
- Increased Power Generation Capacity: The project will add 624 MW of hydro power generation capacity to the Indian grid.
- This will help to meet the growing demand for electricity in the country and reduce reliance on fossil fuels.
- Infrastructure Development: The construction of the Kiru Hydro Electric Project will involve the creation of new infrastructure such as dams, power houses, and transmission lines.
- This will create jobs in the construction sector and boost the overall infrastructure development of Jammu & Kashmir.
- Economic Growth: The project is expected to generate employment opportunities during construction and operation phases.
- This will increase disposable income and stimulate economic activity in the region.
- Clean Energy Source: Hydropower is a clean and renewable source of energy.
- This project will help to reduce India’s carbon footprint and contribute to its clean energy goals.
About REC Limited:
- It is recognized as a ‘Maharatna’ under the Ministry of Power.
- Strategic Role:
- It plays a crucial role in government schemes like SAUBHAGYA and DDUGJY.
- It aims to enhance electricity accessibility and distribution systems across the nation.
- Nodal Agency Responsibilities:
- REC is tasked with managing certain schemes in various States and Union Territories, such as the Revamped Distribution Sector Scheme (RDSS).
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April 25, 2024