REC signs loan agreement for Pakal Dul Hydro Electric Project
Author: PPD Team Date: February 12, 2025
REC Limited has entered into a term loan agreement worth Rs 21.47 billion with Chenab Valley Power Project Limited (CVPPL) to support the development and construction of the 1,000 MW Pakal Dul Hydro Electric Project.
The loan will be used to fund the development, construction, and operation of the project, including part funding of the project cost and reimbursement of excess funds provided by promoters, if any.
The Pakal Dul Hydro Electric Project is a reservoir-based scheme proposed on the Marusudar River, a tributary of the Chenab River in Kishtwar, Jammu & Kashmir. The project is being implemented by a joint venture between Jammu & Kashmir State Power Development Corporation Limited (JKSPDC) and NHPC Limited, with an estimated cost of Rs 126.69 billion.
In the FY 2025-26 Union Budget, the Ministry of Power (MoP) has been allocated Rs 27.13 billion to assist central public sector units (CPSUs), including Rs 3 billion for the Pakal Dul project as part of the Jammu & Kashmir Prime Minister’s Development Package (PMDP) 2015.