Jammu, Mar 7: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the investment sanction for construction of Kiru Hydro Electric(HE) Project (624 MW) by M/s Chenab Valley Power Projects Private Limited (M/s CVPPPL) in Jammu & Kashmir. The project will be implemented at an estimated cost of Rs.4287.59 crore (at July, 2018 price level) which includes Interest During Construction (IDC) and Foreign Component (FC) of Rs.426.16 crore and infusion of equity of Rs 630.28 crore by NHPC in M/s CVPPPL, for construction of Kiru HE Project (624 MW) including Rs.70 crore for pre-construction activities already approved by the Cabinet, while according the approval for execution of the Pakal Dul HE Project. M/s CVPPPL, is a joint venture company amongst NHPC, Jammu & Kashmir State Power Development Corporation (JKSPDC) and PTC with equity shareholding of 49%, 49% and 2% respectively. The project is located on River Chenab in Kishtwar district of Jammu & Kashmir. It envisages construction of a 135 m high concrete gravity Dam above deepest foundation level, 4 Nos circular, Pressure Shaft of 5.5 m internal dia of length varying from 316 m to 322 m, an underground Power House and 4 Nos Tail Race Tunnel, Horseshoe shape, 7 m dia and length varying from 165 m to 190 m. The project shall provide much needed power in northern grid and shall accelerate process of development of remote areas of Jammu and Kashmir. The Project is scheduled to be completed in a period of 4 1/2 years. Kiru HE Project is envisaged as a Run of River (RoR) Scheme, designed complying with the requirements of Indus Water Treaty 1960, with installed capacity 624 MW (4 x 156 MW). The Project would generate 2272.02 MU in a 90% dependable year. The foundation stone of the project was laid by the Prime Minister, Narendra Modi on 3rd Feb 2019. The Government of Jammu and Kashmir (GoJK) already granted exemption on account of payment of levy of toll tax, State Goods and Service Tax (SGST), waiver of free power in a decremental manner and water usage charges for a period of 10 years from the date of commercial operation.