CCEA okays ₹2,614cr investment for Sunni hydel project

Shimla: The cabinet committee on economic affairs (CCEA) has approved investment of Rs 2,614 crore for the 382 MW Sunni Dam Hydro Electric Project in Himachal Pradesh. The run-of-river project on the Satluj in Shimla and Mandi districts of Himachal Pradesh will have a 71-metre-high concrete gravity dam and six generating units in its surface power house.
The project shall generate 1,382 million units annually and the levelized tariff of electricity generated will be R 3.90 per unit. The project is scheduled to be commissioned within 63 months of the commencement of construction works. It is being financed on a 70:30 debt equity ratio and on completion will earn 16.50% return on equity for the SJVN, said an official spokesperson.
The project will provide 1,382 MU of green energy to the grid and reduce carbon dioxide emissions by 1.1 million tonnes annually. Its commissioning will contribute significantly towards the government’s vision to provide round the clock power to all, the spokesperson added.
SJVN chairman and managing director Nand Lal Sharma said the forest and environment clearances had already been accorded, while Rs 266 crore had been spent on pre-construction activities. The project construction activities would result in direct and indirect employment to around 4,000 persons. On commissioning, 13% of the electricity generated will be provided free of cost to Himachal, including 1% for local area development fund, he said. For the project life cycle of 40 years, this free power translates into benefits worth Rs 2,803 crore.
Sharma said the families affected by the project would get 100 units of free electricity per month for 10 years. The development of the project will also lead to betterment of roads, bridges, healthcare and other infrastructure and this will play a vital role in socio-economic development of the region, he added.