NHPC and JKPDC are negotiating a memorandum of understanding (MoU) for setting up power projects with capacity to generate 2,100 MW power in Chenab basin in the state.
"I hope that the MoU will be signed by the end of this month," Minister of State for Power Jairam Ramesh told reporters here.
Ramesh said the draft for the MoU has been prepared and work on the projects would be started by the proposed joint venture company immediately after it has been signed by the two sides.
The joint venture (JV) would construct three projects in Chenab basin. Ramesh said 1,200 MW Pakaldul power project would be the biggest among the projects to be constructed under the JV between NHPC and JKPDC. The other two projects are to be set up at Kiru and Kawar in Chenab basin and would have almost identical generation capacities.
The total cost of the projects would be around Rs 15,000 to Rs 16,000 crore.
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Once completed, the projects would benefit J&K immensely as the state is guaranteed to get a minimum of 62 per cent of power generated from these projects.
There have been demands from the state for increasing its share of power generated from the projects. J&K would get a minimum of 1,300 MW of power from these projects, Ramesh said.
Ramesh said the JV company will be registered in Srinagar and the Chairman of the project will be a nominee of the state government.