NHPC Limited of India has formed a joint venture company, Ratle Hydroelectric Power Corporation Limited, for implementation of the 850-MW Ratle Hydroelectric Project.
Ratle is a run-of-river plant on the Chenab River, Kishtwar District, Union Territory of Jammu and Kashmir.
The joint venture was incorporated June 1, 2021, with NHPC and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) holding equity share of 51% and 49%, respectively.
A tripartite memorandum of understanding (MoU) was signed on in February 2019 amongst JKSPDC, NHPC and erstwhile Government of Jammu & Kashmir. A supplementary MoU for implementation of Ratle was signed on January 2021 at Jammu.
Ministry of Power has already conveyed investment sanction for construction of Ratle at an estimated cost of INR5281.94 crore (US$724.2 million) (at Nov.2018 price level).
The Promoters Agreement was signed in April 2021, leading to the incorporation of Ratle Hydroelectric Power Corporation Limited.
The government of the Union Territory of Jammu and Kashmir, to make the project viable, will extend exemption from levy of Water Usage Charges for 10 years after commissioning of the project, reimbursement of state’s share of GST (i.e. SGST) and waiver of free power to the Union Territory of Jammu and Kashmir in a decremental manner, i.e., the free power to the Union Territory of Jammu and Kashmir would be 1% in the first year after commissioning of the project and rising at 1% per year to 12% in the 12th year.