The Cabinet Committee on Economic Affairs (CCEA) has approved the investment for a hydropower project in Himachal Pradesh.
A government release said that an investment of Rs.2,614.51 crore has been approved for Central PSU SJVN’s 382-mw Sunni Dam hydropower project. The investment includes Rs.13.80 crore as budgetary support (Central assistance) meant to cover cost of enabling infrastructure.
Ex-post facto approval is given for cumulative expenditure incurred amounting to Rs.246 crore till January 2022, the release said.
Detailed cost estimate
The project cost of Rs.2,614 crore includes hard cost amounting to Rs.2,246.40 crore, interest during construction (IDC) of Rs.358.96 crore and financing charges of Rs.9.15 crore . The revised cost sanctions for cost variations due to quantity changes (including additions/ alterations/extra items) and time overruns due to the developer shall be capped at 10 per cent of sanctioned cost.
Project Details
The run-of-river project being executed on river Satluj in district Shimla and Mandi of Himachal Pradesh will have 71m high concrete gravity dam and six generating units in its surface power house. The project shall generate 1382 million kwh (MU) annually and the levelized tariff of electricity generated will be Rs.3.90 per unit. The project is scheduled to be commissioned within 63 months of the commencement of construction works. The project is being financed on 70:30 debt equity ratio and on completion it will earn 16.50 per cent return on equity for SJVN, a separate release from SJVN said.
Benefits to home state
On commissioning, 13 per cent of the electricity generated will be provided free of cost to Government of Himachal Pradesh. For the project lifecycle of 40 years, this free power translates into benefits of Rs.2803 crore, SJVN said.
Also read: CCEA Approves 540-Mw Kwar Hydropower Project In J&K
Featured photograph (source: SJVN) is a file picture showing pre-construction activities at the Sunni dam hydropower project site in Himachal Pradesh.
