REC to provide Rs 2,147-crore term loan to set up 1,000 MW Pakal Dul hydro project

State-owned REC Ltd on Tuesday said it has inked a pact to provide a term loan of Rs 2,147.50 crore to Chenab Valley Power Project Ltd for setting up a 1,000 MW greenfield Pakal Dul hydro power project. The project is being developed on the Marusadar river, located in the Kishtwar district of Jammu & Kashmir, a statement said.

According to the statement, REC Ltd has signed an agreement with Chenab Valley Power Project Ltd (CVPPL) to provide a term loan of Rs 2,147.50 crore.

The loan will be utilised for the development and construction of the greenfield Pakal Dul Hydro Electric Project, a 1,000-MW capacity hydroelectric project with a total estimated cost of Rs 12,669.67 crore.

The formal signing ceremony took place on February 11, 2025, at CVPPL's Corporate Office in Jammu (J&K) in the presence of Ramesh Mukhiya, Managing Director, CVPPL, and Bhupesh Chandolia, Chief Project Manager (CPM), REC Ltd, Regional Office Jammu, along with other senior officials from both organisations.

This strategic collaboration marks a significant milestone in the pursuit of sustainable energy development in the Jammu & Kashmir region.

The Pakal Dul Hydro Electric Project is expected to play a pivotal role in harnessing renewable energy resources, contributing to the region's energy security, and supporting India's clean energy transition.