Kwar Hydro Electric project

April 28, 2022

On 27^th April 2022, the Cabinet Committee on Economic Affairs gave its approval to invest Rs 4,526.12 crore for the 540 MW Kwar Hydro-electric project that is located on Chenab River, Kishwar district, Jammu & Kashmir.

Overview:

This upcoming hydroelectric project is a part of the Indus basin.
This project is a part of one of the four projects that are coming up in the district.
The projects include the 624 MWs run-of-the-river Kiru hydroelectric project and the 1,000 MWs Pakal Dul hydroelectric project.

About Indus Water Treaty

Under the Indus Water Treaty (IWT) that was signed between India and Pakistan in 1960, both countries share the waters of six rivers in the Indus basin flowing through India towards Pakistan. Out of these, India has complete rights over the three eastern rivers which are Beas, Sutlej, and Ravi, while Pakistan has rights over Jhelum, Chenab, and Indus which are the western rivers. However, India can build run-of-the-river projects on the western rivers whose rights are with Pakistan. Since, the last five years, the Indian government has been on a construction spree to fully tap the potential of India’s side of the Indus basin.

About the hydropower project

This project will be implemented by the Chenab Valley Power Projects Private Ltd (CVPPL). It is a joint venture between Jammu & Kashmir State Power Development Corporation (JKSPDC) and NHPC Ltd having an equity contribution of 49 percent and 51 percent respectively. Upon competition, this project will be generating 1,975.54 million units. A grant of Rs 69.80 crore is being extended by the central government for the cost of enabling infrastructure. The centre will also be supporting Jammu & Kashmir by providing a grant of Rs 655.08 crore for JKSPDC’s equity contribution to CVPPPL. NHPC will be investing Rs 681.82 crore from its internal resources. This project will be commissioned within a 54 months time period.

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