Investment approval granted for SJVN’s hydroelectric project in Himachal Pradesh

The cabinet committee on economic affairs chaired by the Indian prime minister has approved an investment for the 382 MW Sunni Dam hydroelectric project in Himachal Pradesh by SJVN Limited. The project is estimated to be built at a cost of Rs 26.14 billion including Rs 138 million as budgetary support from the government of India to meet the cost of enabling infrastructure. Ex-post facto approval has been given for cumulative expenditure incurred amounting to Rs 2,460 million till January 2022.

The project cost also includes hard cost amounting to Rs 222.464 billion and interest during construction (IDC) and financing charges of Rs 3,589.6 million and 91.5 million, respectively. The revised cost sanctions for cost variations due to quantity changes (including additions/ alterations/ extra items) and time overruns due to the developer shall be capped at 10 per cent of sanctioned cost.

Keeping in view the aims and objectives of Atmanirbhar Bharat Abhiyan, the present proposal for setting up of 382 MW Sunni Dam HEP by SJVN shall provide various benefits to local suppliers, local enterprises, MSMEs and shall encourage entrepreneurship opportunities within the country besides promoting employment and socio-economic development of the region. The implementation of the project shall also generate direct and indirect employment for about 4,000 persons during the peak construction phase of the project.