NHPC’s ₹18,700 Cr J&K Hydro Project: Power Ministry Explores Debt
By Business Desk
India’s Power Ministry is exploring a ₹18,700 crore subordinated debt for NHPC’s 1,856 MW Sawalkote hydro project in Jammu & Kashmir, boosting national hydropower goals.
The Power Ministry is considering a proposal to extend approximately ₹18,700 crore in subordinated debt at a low interest rate to NHPC Ltd. This financing targets the 1,856 MW Sawalkote hydroelectric project located in Jammu and Kashmir.
Project Details and Approval Process
This significant funding proposal remains in an exploratory stage. It requires formal approval from the Expenditure Finance Committee before any disbursements can proceed.
The Sawalkote project carries an estimated cost of ₹31,380 crore, as evaluated last year by the Expert Appraisal Committee of the environment ministry.
Key Financial and Project Figures
Proposed Subordinated Debt: ₹18,700 crore.
Project Estimated Cost: ₹31,380 crore.
Project Capacity: 1,856 MW.
The primary objective of this substantial financing is to bolster India’s hydropower development efforts. This initiative aligns with broader national energy strategies.
Strategic Context of Hydropower
India has intensified its promotion of hydropower projects, particularly those situated on the western rivers within Jammu and Kashmir. This strategic focus follows the decision to put the Indus Waters Treaty in abeyance.
The Power Minister recently reviewed NHPC’s ongoing projects across the region. Concurrently, other large-scale hydropower initiatives in Arunachal Pradesh have also secured government approval.
These additional approved projects include:
The 1,200 MW Kalai-II project.
The 1,720 MW Kamala project.
The push for such significant projects underscores India’s commitment to harnessing its hydropower potential. These developments are crucial for energy security and regional infrastructure growth.