REC inks Rs 1869 Cr loan deal with CVPPPL for 624 MW Kiru Hydro Project

Srinagar, Apr 24: REC Limited, a Maharatna CPSE under the Ministry of Power and a prominent non-banking financial company (NBFC) has inked a significant agreement with Chenab Valley Power Project Private Limited (CVPPPL).

The agreement entails financial assistance amounting to Rs 1869.265 crore in the form of a term loan.

The purpose of this loan is earmarked for the development, construction, and operation of the Greenfield Kiru Hydro Electric Project, a venture envisaging four units of 156 MW each.

This hydroelectric project is slated to be situated on the River Chenab, nestled in Kishtwar district.

This collaborative effort between REC Limited and CVPPPL underscores a strategic initiative aimed at harnessing the immense hydroelectric potential of the region while contributing to the overall development and electrification endeavours in Jammu and Kashmir. The Kiru Hydro Electric Project represents a significant step towards bolstering the region’s renewable energy infrastructure and fostering sustainable growth, a senior official said.

The agreement was signed in the presence of Managing Director, Ramesh Mukhiya; General Manager (C&P), Vasant Hurmade; and General Manager (Finance), Sanjay Kumar Gupta from CVPPPL and Deputy General Manager, Pramod Kumar Soni and Deputy General Manager from REC Limited, Rishabh Jain among other key officials from both organisations.

Kiru Hydro Electric Project (624 MW), a run-of-river scheme is proposed on River Chenab about 42 km from Kishtwar. The project envisages the construction of a 135 metre high dam and an underground powerhouse with 4 units of 156 MW each.

CVPPPL is a Joint Venture Company between NHPC (51 percent) and JKSPDC (49 percent) formed on the initiative of the J&K government and the Government of India (GoI) to harness the vast hydro potential of River Chenab.

The company was incorporated in 2011.

CVPPPL has been entrusted with the construction of the Kiru HE Project (624 MW), Pakal Dul HE Project (1000 MW), Kwar HE Project (540 MW), and Kirthai-II HE Project (930 MW) on Build, Own, Operate and Maintain (BOOM) basis with an aggregate installed capacity of 3094 MW. REC is a 'Maharatna' CPSE under the Ministry of Power and is registered with RBI as a Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC).

REC is financing the entire power infrastructure sector comprising generation, transmission, distribution, renewable energy, and new technologies.