Ratle Hydro Electric Project: Successful diversion of Chenab achieved; to expedite dam construction

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New Delhi: A major milestone has been achieved at the 850 MW Ratle Hydro Electric Project with the diversion of Chenab River through tunnels at Drabshalla in Kishtwar district,

 The river diversion will enable the isolation of the dam area at the river bed for starting the critical activity of excavation and construction of the dam. It will expedite project construction activities and help minimize delays to facilitate all efforts being made by the project to meet the scheduled commissioning date of May 2026.

The River Diversion ceremony was inaugurated by CMD, NHPC R.K. Vishnoi and witnessed by Principal Secretary (PDD), J&K, H. Rajesh Prasad; Chairman, RHPCL, I. D. Dayal; MD, JKSPDC, Pankaj Mangotra; Directors of NHPC; CEO, RHPCL, A.K. Nauriyal and other officials from NHPC and J&K government.

The Ratle Project is being executed by Ratle Hydroelectric Power Corporation Limited (RHPCL), a Joint Venture of NHPC Limited and the government of J&K, with a shareholding of 51:49 percent, respectively. Ratle HE project is situated on River Chenab in Kishtwar District of J&K with an installed capacity of 850 MW. The sanction of the Cabinet Committee on Economic Affairs was accorded to the project by the Government of India in January 2021, at a total cost of Rs. 5281.94 crores

Earlier on January 20, Union Cabinet,  approved the investment of Rs.5281.94 crore for the 850 MW Ratle Hydro Electric (HE) Project by a new Joint Venture Company (JVC) to be incorporated between National Hydroelectric Power Corporation (NHPC) and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) with equity contribution of 51% and 49% respectively.

Salient Features

The government of India is also supporting the Union Territory of Jammu and Kashmir by providing a grant of Rs. 776.44 crore for the Equity contribution of JKSPDC in the JVC to be set up for the construction of Ratle HE Project (850 MW). NHPC shall invest its equity Rs.808.14 crore from its internal resources. The Ratle Hydro Electric Project shall be commissioned within 60 months. The Power generated from the Project will help in providing balancing of the Grid and will improve the power supply position.  

Implementation Strategy

The government of Union Territory of Jammu and Kashmir, to make the Project viable, will extend the exemption from levy of Water Usage Charges for 10 years after commissioning of the project, reimbursement of State’s share of GST (i.e. SGST), and waiver of free power to the Union Territory of Jammu and Kashmir in a decremental manner, i.e., the free power to the Union Territory of Jammu and Kashmir would be 1% in the 1st year after commissioning of the Project and rising @1% per year to 12% in the 12th year.


The construction activities of the Project will result in direct and indirect employment to around 4000 persons and will contribute to the overall socio-economic development of the Union Territory of Jammu and Kashmir. Further, the Union Territory of Jammu and Kashmir will benefit by getting free power worth Rs. 5289 crore and through the levy of Water Usage Charges worth Rs.9581 crore from the Ratle Hydro Electric Project, during the project life cycle of 40 years.

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