New Delhi: REC Limited, a state-owned enterprise, has agreed to provide a Rs 1,869 crore term loan for the 624 MW Kiru Hydro Electric Project in Kishtwar, Jammu & Kashmir. The funds will be used to develop, build, and operate a hydroelectric facility on the River Chenab.
The project includes a 135-meter high dam and an underground powerhouse with four units, each capable of generating 156 MW.
The loan agreement was signed with Chenab Valley Power Project Private Ltd (CVPPPL), a joint venture formed in 2011 between National Hydroelectric Power Corporation (51%) and Jammu & Kashmir State Power Development Corporation (49%).
This funding is part of REC’s efforts to finance various power infrastructure sectors, including renewable energy and new technologies.
The 624 MW Kiru Hydro Electric Project has an estimated cost of Rs 42.88 billion ($609.71 million). It received environmental approval in 2016, began construction in 2019, and is expected to be completed by 2025. The project is classified as a run-of-river project, which generates electricity using the natural flow and elevation of the river, eliminating the need for large reservoirs.
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