New Delhi [India], April 24 : REC Limited, a Maharatna Central Public Sector Enterprise and an NBFC under the Ministry of Power has signed an agreement with Chenab Valley Power Project Private Limited (CVPPPL), under which REC will provide CVPPL with the financial assistance of Rs 1,869.265 crores as term loan.
As per a release from the Ministry of Power, the loan will be utilised for development, construction and operation of the greenfield 4 x156 MW Kiru Hydro Electric Project on river Chenab, in Kishtwar district of Jammu and Kashmir.
The 624 MW Kiru Hydro Electric Project is a run-of-river scheme, which envisages the construction of a dam of height 135 metres and an underground powerhouse with four units of 156 MW each.
The agreement was signed in the presence of Managing Director, Ramesh Mukhiya; General Manager (C&P), Vasant Hurmade; General Manager (Finance), Sanjay Kumar Gupta from CVPPPL, and Deputy General Manager, Pramod Kumar Soni; and Deputy General Manager, Rishabh Jain from REC Limited.
CVPPPL is a Joint Venture Company between NHPC (51 per cent) and JKSPDC (49 per cent), a joint initiative of the government of India and the government of J&K, formed to harness the vast hydro potential of river Chenab.
The company was incorporated in 2011. CVPPPL has been entrusted with construction of Kiru Hydro Electric Project (624 MW), Pakal Dul Hydro Electric Project (1000 MW), Kwar Hydro Electric Project (540 MW), and Kirthai-II Hydro Electric Project (930 MW) on Build, Own, Operate and Maintain (BOOM) basis with an aggregate installed capacity of 3,094 MW.
The loan book of REC stands at Rs 4.97 lakh crore and net worth at Rs. 64,787 crore as on December 31, 2023.
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