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Union Cabinet Approves Rs. 5,281.94 Cr. Investment in Ratle Hydro Electric Project

Union Cabinet, chaired by Prime Minister Narendra Modi has approved Rs.5,281.94 Cr. investment for Ratle Hydroelectric project being developed on Chenab river, in Kishtwar district of Union Territory of Jammu and Kashmir.

Ratle hydro electric project shall be commissioned within a span of 60 months.

Salient Features of Ratle Hydro Electric Project


Ratle Hydro-electric Project is a run-of-the-river hydro electric project with 850 MW total generation capacity. Ratle Hydro’s power house shall contain four 205 MW Francis turbine plus one 30 MW Francis turbine in auxiliary power station. The hydroelectric project shall have 133 meter tall gravity dam and 400 Meter long intake tunnel.

Implementing Company of Ratle Hydro Electric Project: The project shall be implemented by a newly formed Joint Venture Company between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC), with equity contribution of 51% and 49% respectively.

Centre’s Contribution towards Rattle Hydroelectric Project

NHPC logo

To support newly formed Union Territory of Jammu and Kashmir, Government of India is providing grant of Rs. 776.44 crore as equity contribution to JKSPDC for development and construction of Hydro Electric Project. NHPC shall invest its share of Rs. 808.14 crore equity from its internal resources in the Joint Venture.

J&K Government’s Contribution towards Ratle Hydro Project

To support the Ratle hydro project, Government of Jammu and Kashmir shall give the project an exemption from water usage charges for a period of 10 years after commissioning of the project.

Union Territory Government shall also reimburse the State’s share of GST (i.e. SGST) that would be generated from Ratle Hydro Project.

Government of Union Territory of Jammu and Kashmir will also give waiver of free power which the state should have been getting from Ratle project, but in a decremental manner. It means that in the first year after commissioning the State shall get only 1% free power, similarly in the second year J&K shall get 2% free power and this shall rise @1% per year to 12% free power in the 12th year.

Benefits to J&K from Ratle Hydro Power Project

After the exemption period of 10 years, Union Territory shall be getting Rs. 9,581 crore as water usage charges from Ratle project, for project life cycle of 40 years. Similarly, Union Territory shall be getting free power worth Rs. 5,289 crore from Ratle hydro electric project, during project life cycle of 40 years.

Around 4,000 people shall get direct and indirect employment during construction of the project. Moreover, power generated from Ratle Project will help to provide balancing of grid and will improve power supply position.