New Delhi: REC Limited has entered into a term loan agreement worth Rs 2,147.51 crore with Chenab Valley Power Projects Limited (CVPPL) to support the development and construction of the 1000 MW Pakal Dul Hydro Electric Project in Kishtwar, Jammu & Kashmir. The total estimated cost of the greenfield project is Rs 12,669.67 crore.
The agreement was formalized during a signing ceremony held at CVPPL’s Corporate Office in Jammu, with the participation of CVPPL’s Managing Director Ramesh Mukhiya and REC Limited’s Chief Project Manager (CPM) Regional Office Jammu, Bhupesh Chandolia, alongside senior officials from both organizations.
The Pakal Dul Hydro Electric Project, situated on the Marusadar River (a tributary of the Chenab), is expected to play a pivotal role in enhancing renewable energy generation in the region. The project is aligned with India’s clean energy transition, contributing significantly to energy security and sustainable power development in Jammu & Kashmir.
This is not the first financial collaboration between REC and CVPPL. In April 2024, REC had extended a term loan of Rs 1,869.27 crore to CVPPL for the Kiru Hydro Electric Project (4×156 MW), also located in Kishtwar on the Chenab River.
With this latest funding, REC Limited continues to strengthen its position as a key financier in India’s energy infrastructure, particularly within the renewable and hydroelectric sectors.