Union Cabinet Approves Rs 2614 Cr Investment For SJVNs Sunni Dam Project

Shimla: Chaired by Prime Minister Narendra Modi, the Union Cabinet Committee On Economic Affairs on Wednesday cleared an investment of Rs 2614 Crore for construction of 382 MW Sunni Dam project on River Satluj in Himachal Pradesh.

Giving details about the project Mr. Nand Lal Sharma, Chairman-cum-Managing Director of SJVN (the organisation executing the project) said the the Sunni Dam is a Run of River project spread over Shimla & Mandi districts of Himachal Pradesh.

Work in progress at site of Sunni Dam project (Photo: SJVN Photo Gallery)

Its construction involves a 71-meter-high concrete gravity dam that will have 6 generating units at a surface power house. On commissioning, the project would generate 1382 million units annually and the levelized tariff of electricity generated is projected at Rs. 3.90 per unit at current project costs.

The project is scheduled to be commissioned within 63 months of the commencement of construction works. The project is being financed on 70:30 debt equity ratio and on completion it will earn 16.50% return on equity for SJVN.

The CMD also disclosed that the Forest & Environment Clearances had already been accorded while Rs. 266 crores have so far been spent on pre-construction activities.

On commissioning, 13% of the electricity generated is to be provided free of cost to Government of Himachal Pradesh, which includes 1% for Local Area development fund. The project life cycle is estimated at 40 years.

Sunni Dam Hydro Electric Project will add 1382 MU of green energy to the grid and will reduce carbon dioxide emissions by 1.1 Million tons annually.

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