December 03, 2008

NHPC to ink 51:49 JV with JK to develop 3 power projects

ET reported that National Hydroelectric Power Corporation will join hands with JK Power Development Corporation to form a company for setting up 3 power projects on Chenab. NHPC would own 51% of the company, tentatively named Chenab Valley Power Projects. It would be registered in Srinagar.

A MoU will be signed on April 26th 2008 in Jammu during Prime Minister Dr Manmohan Singh’s 2 day visit to the state. Mr Singh would also formally inaugurate the NHPC owned Dul Hasti power project, even though it is operational for over a year now.

Mr Jairam Ramesh union minister of state for power said that "This will be the first such agreement that NHPC would be signing with any commercial organization owned by any state government." He added that NHPC has 2 such agreements with Madhya Pradesh and Manipur governments but not with any commercial organizations that any state owns.

Mr Ramesh said that "We would manage all the prerequisites for starting work on the actual implementation within the next 60 days. A 12 member board with equal number from the two partners would manage the CVPP affairs. It will have a professional, and not a political, chairman nominated by the JKPDC and its MD would be nominated by NHPC."

The 3 projects will have a cumulative installed capacity of around 2120 MW and would entail an investment of over INR 12,720 crore. Of this, 30% would be the equity from the 2 sides. Right now, all the 3 projects are at different stages of clearance from various ministries and institutions. The 3 projects, to be set up in next 4 years, include 600 MW Kiru, 1000 MW Pakal Dul and 520 MW Karwa.