NEW DELHI : The Union budget may provide greater assistance to expedite the construction of the strategically important Pakul Dul hydropower project on Marusudar river, a tributary of Chenab river that flows from India into Pakistan, said two government officials aware of the development. This assumes significance against the backdrop of Pakistan’s objections to the 1,000 megawatts (MW) project, which will be the first storage hydropower project in Jammu and Kashmir.
The budget may provide for more than ₹500 crore central assistance as grant and loan to Chenab Valley Power Projects Pvt. Ltd, a joint venture between state-run NHPC Ltd, Jammu & Kashmir State Power Development Corp. Ltd (JKSPDC), and the country’s largest electricity trader, PTC India Ltd, which is constructing the project.
The task is seen as strategically vital in the context of China developing the controversial China-Pakistan Economic Corridor (CPEC) in the region. The control on river water flow also acts as a force-multiplier during times of aggression. The increased assistance is part of India’s plans to fully utilize its share of water under the Indus Waters Treaty of 1960 and expedite establishment of important hydropower projects in Jammu and Kashmir post its reorganization.
Prime Minister Narendra Modi had laid the foundation stone of the Pakal Dul project in May 2018. With a total cost of ₹8,112.12 crore, the project will help improve water availability in the lean season. It will also provide 12% free power to Jammu and Kashmir and 1% free power towards the local area development fund.
Queries emailed to the spokespersons of ministries of power and finance, NHPC and PTC India late on Sunday remained unanswered. The JKSPDC spokesperson couldn’t be contacted.
According to the Indus Waters Treaty, whoever builds the project first will have the first rights on the river waters.
Pakistan had raised objections to the 330MW project on the river Kishanganga, a tributary of Jhelum, and the 48 MW Lower Kalnai hydroelectric project on the Chenab river.
The Union Cabinet recently approved a ₹5,281.94 crore investment for 850 MW Ratle hydropower project, also on the Chenab river. NHPC is the largest investor in Jammu and Kashmir and has invested around ₹20,778 crore there in the past four decades.
Mint earlier reported about India aiming to speed up NHPC Ltd’s hydropower projects in Jammu and Kashmir following the reorganization of the state, which has been hit by an unprecedented cycle of violence in recent years.
