New Delhi: In order to meet the increasing electricity demand, the Centre has allocated 207MW of additional power to Jammu and Kashmir.

According to the Union Ministry of Power, the move will substantially increase the availability of power in the union territory.

Meanwhile, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved the investment of Rs 4,526.12 crore for the 540 Megawatt (MW) Kwar Hydro Electric project located on river Chenab, in Kishtwar district of Jammu and Kashmir.

The project will be implemented by Chenab Valley Power Projects Private Limited (CVPPPL), a joint venture company between NHPC Limited and Jammu and Kashmir State Power Development Corporation (JKSPDC) with equity contributions of 51 per cent and 49 per cent, respectively.

The project shall generate 1975.54 million units in a 90 per cent dependable year, according to an official statement released after the cabinet meeting.

The Government of India is extending a grant of Rs 69.80 crore towards the cost of Enabling Infrastructure and also supporting the Union Territory of Jammu and Kashmir by providing a grant of Rs 655.08 crore for the equity contribution of JKSPDC (49 per cent) in CVPPPL.

NHPC shall invest its equity (51 per cent) of Rs 681.82 crore from its internal resources. The Kwar Hydro Electric Project shall be commissioned with a span of 54 months. The Power generated from the Project will help in balancing of Grid and will improve the power supply position, the statement said.

The construction activities of the project will result in direct and indirect employment to around 2,500 persons and will contribute to the overall socio-economic development of the Union Territory of Jammu and Kashmir.