Amid pause on the Indus Water Treaty (IWT), the Centre has sought a loan of Rs 3,119 crore to fast-track the construction of the key Kwar Dam on the Chenab River in Kishtwar in Jammu and Kashmir.
According to News18, the project has sought the best competitive interest rates from various financial institutions and banks for raising a Rs 3,119 crore term loan to part finance the 540 MW Kwar Hydro Electric Project. The entire project is reportedly worth a total Rs 4,526 crore.
India earlier announced it was walking out of the Indus Waters Treaty (IWT), a six-decade-old transboundary water agreement that governs the division of water from the Indus Basin’s six rivers. The move came after the 22 April Pahalagam attack that claimed 26 lives.
The run-of-river project on the river Chenab, in Kishtwar district, will comprise a 109 m-high concrete gravity dam, with water to be diverted through four 5.65 m-diameter penstocks to an underground powerhouse, with four Francis turbine-generator units, with capacity of 135 MW each.
CVPP was established in June 2011 by the government of Jammu and Kashmir and by the central government to harness the hydropower potential of the Chenab river basin. Diversion of River Chenab was achieved in January 2024. The river diversion is expected to enable isolation of the dam area at river bed for starting the critical activity of excavation and construction of dam.
It will expedite project construction activities and help in minimising delays to facilitate all efforts being made by the project to meet the scheduled commissioning date of May 2026.
How will the project help?
Prime Minister Narendra Modi laid the foundation stone of the project on April 24, 2022. The government is making all efforts for the timely completion of the milestones for early completion of the Kwar HE Project by 2027.
The completion of this project will improve the availability of energy in the region, which will further accelerate the industrial growth of the country in general and J&K region in particular. The project is located about 28 km from Kishtwar. It is also expected to significantly contribute to India's power generation capacity and support the country's clean energy transition goals. These projects will add a substantial amount of hydropower to the grid, helping to meet growing electricity demands and reduce reliance on fossil fuels. Additionally, the projects are expected to boost the socio-economic development of the Jammu & Kashmir region through job creation and infrastructure development.
The projects, with a combined capacity of over 3000 MW, will significantly increase the region's and India's power generation capacity. The Chenab River basin is strategically important, and these projects enhance India's energy security and control over its water resources.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
