Power utility NHPC said it will invest INR 2,400 crore on setting up three projects in J&K under a joint venture with Jammu & Kashmir State Power Development Corporation and PTC India.

The joint venture entity Chenab Valley Power Projects Pvt Ltd will implement three projects having a total capacity of over 2,100 MW. These are: Pakal Dul (1,000 MW), Kiru (600 MW) and Kwar (520 MW).

Mr ABL Srivastava CMD of NHPC in an interview told PTI that "The total investment to be made by the joint venture firm will be around INR 15,000 crore. NHPC's equity contribution toward the entity will be around INR 2,400 crore.”

He said the joint venture company's first project Pakal Dul is expected to be complete in six to seven years. The three projects will be funded in a debt-equity ratio of 70:30.

Chenab Valley Power Projects was incorporated earlier this month.

In December, 2010, Jammu & Kashmir State Power Development Corp, NHPC and PTC India had inked a promoter's agreement for setting up the new entity.

Jammu & Kashmir State Power Development Corp and NHPC would have 49 per cent stake each in the joint venture firm, while the remaining shareholding would be with PTC India.

Out of NHPC's installed capacity of about 5,300 MW, over 1,600 MW comes from J&K.

(Sourced from ET)