Indian developer pays compensation for environmental impacts of 1,000-MW Pakul Dul hydropower project

Government-owned developer Chenab Valley Power Projects Pvt. Ltd. has paid about US$65 million to the state as compensation natural resources and land associated with its 1,000-MW Pakal Dul hydropower plant.

According to the Indian government, the compensation includes $2.7 million paid to the Ministry of Environment, Forest and Climate Change for the diversion of about 165.7 hectares of forest on the bank of the Marusader River; and $26.8 million to the ministry for the diversion of 195 hectares of forest land in the Kishtwar National Park. The money will primarily be used to help reforest the areas.

Meanwhile, an additional $35.5 million will be paid to the ministry for wildlife conservation efforts, with a further $15 million separate from the compensation to be earmarked by Chenab Valley Power future environmental maintenance.

Pakal Dul is located along the Marusader River in India’s northern Jammu & Kashmir state. reported that the country’s Union Cabinet had given investment approval for the project in September 2014.

The cabinet also gave ex-post facto approval for formation and incorporation of Chenab Valley Power, a joint venture of NHPC and Jammu & Kashmir State Development Corp., each owning 49 percent, and government-owned power trader PTC India Ltd., owning 2 percent.

The government said Pakal Dul will help reduce the power shortage in the northern region and partly utilize storage provisions of the Indus Water Treaty with Pakistan.

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Michael Harris formerly was Editor for

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