Indian Bureaucracy, Jammu, February 11, 2025| REC Limited, a Maharatna CPSE and a key non-banking financial company (NBFC) under the Ministry of Power, today signed a ₹2,147.508 crore term loan agreement with Chenab Valley Power Project Limited (CVPPL). The loan will finance the development of the Mega Pakal Dul Hydro Electric Project, a 1,000 MW initiative expected to cost ₹12,669.67 crore. Located on the Marusadar River in Kishtwar District, Jammu & Kashmir, the project is part of efforts to boost the region’s power generation capacity. This follows a previous agreement in April 2024, when REC provided ₹1,869.265 crore for the Kiru Hydro Electric Project (4 x 156 MW) on the Chenab River.
Aimed at boosting power generation in J&K, the Pakal Dul hydroelectric project, under construction in Drangdhuran, Jammu and Kashmir, is a 1 GW run-of-the-river scheme expected to generate about 3,330 million units of energy annually and is the largest hydro project and the first storage scheme dam in the state.
Constructed by Chenab Valley Power Projects (CVPPL), the project features a 167-meter tall dam and an underground powerhouse housing four 250 MW turbines. The construction is set for completion by the end of 2025, with operations beginning in September 2026. The project is expected to create over 3,000 jobs and provide J&K with 12% free power during the first ten years of operation.
The formal signing ceremony took place on February 11, 2025, at CVPPL’s Corporate Office in Jammu (J&K) in the presence of Shri Ramesh Mukhiya, Managing Director, CVPPL and Shri Bhupesh Chandolia, Chief Project Manager (CPM), REC Limited, Regional Office Jammu along with other senior officials from both organisations.
The Indian government has supported the project with Rs 25 billion in debt and Rs 11.92 billion in grants. The contractors involved in the Pakal Dul Hydro Electric Project include Bharat Heavy Electricals (BHEL), is responsible for the electro-mechanical works at the Pakal Dul Hydro Electric Project. Jaiprakash Associates (JAL) was awarded a ₹28.53 billion contract for the dam’s civil works in 2018, Germany’s Voith Hydro for supply of turbines, generators, and a switchyard. Lombardi of Switzerland, designed the precast segmental lining for the race tunnels, and Larsen & Toubro was engaged for head race tunnel boring machine package in 2020.
