Srinagar: The Jammu and Kashmir State Administrative Council (SAC) Friday accorded sanction to a set of exemptions for making the 624 MW Kiru hydro electric project (HeP) commercially viable, an official spokesman said.
The Kiru 624 MW HeP is coming up on run of the river Chenab located in Kishtwar district and is being implemented through a joint venture company formed between NHPC with 49 per cent and JKSPDC with 49 per cent and PTC with 2 percent.
To make the project commercially viable, proposal for granting various exemptions to the project was thoroughly examined by various departments, the spokesman said.
After extensive deliberations, it was decided that instead of exemption of 12 per cent free power for the first 10 years of the commercial production of the project as was done in case of Pakal Dul HeP, free power will be exempted in a decremental manner for the first five years of commercial operation of the project and will restore to 12 per cent from the 6th year onwards, he said.
Thus, free power will be exempted at 10 per cent in the first year, eight per cent in the second year, six per cent in the third year, four per cent in the fourth year and two per cent in the fifth year of commercial operation of the project, the spokesman said.
The total project cost works out at Rs 3,985.10 crore and equity requirements from the J&K government shall be Rs 5,85.80 crore for the project, he said.
The cost of the project will include subordinate debt of Rs 1,500 crore from the Union government, he said.