J&K Administrative Council approves 40-year lease for Kiru Hydroelectric Project

In a significant development, the Administrative Council (AC) of Jammu and Kashmir, chaired by Lieutenant Governor Manoj Sinha, approved a 40-year lease with mortgage rights for 1750 kanal 17 marla (87.54 hectares) of land for the Kiru Hydroelectric Project in Kishtwar district. The land, acquired by the Collector Land Acquisition, Kishtwar, in village Galhar Bhata, Tehsil Nagseni, will be leased to Chenab Valley Power Projects Private Limited (CVPPPL) under Rule 13 (ii) read with Rule 16 of the J&K Land Grants Rules, 2022.

The meeting saw the attendance of key officials including Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor; Atal Dulloo, Chief Secretary; and Mandeep Kumar Bhandari, Principal Secretary to the Lieutenant Governor.

The Kiru Hydroelectric Project, currently under construction, is being developed by CVPPPL, a joint venture between NHPC Limited and JKSPDC. The project, awarded on an EPC mode, is progressing at a rapid pace and is slated for completion by March 2026.

To finance 70% of the project’s debt component, CVPPPL has initiated the process of securing commercial loans. Lending agencies have stipulated the mortgage of movable and immovable assets, including land, as a condition for the loan.

In light of this, the Administrative Council has granted approval for a 40-year lease of the land with mortgage rights (renewable), authorizing the Administrative Secretary of the Power Development Department (PDD) to finalize lease agreements and undertake necessary actions on behalf of the Jammu and Kashmir government.

With an estimated project cost of Rs 4288 crore, the Kiru Hydroelectric Project is poised to significantly bolster the power supply in Jammu and Kashmir, generating approximately 2272.02 million units of energy annually.

This strategic move underscores the government’s commitment to enhancing infrastructure and energy capabilities in the region, fostering economic growth and stability.