Gurugram, April 24 (IANS): REC Limited, a Maharatna public sector company and a leading NBFC, has signed an agreement with Chenab Valley Power Project Private Limited (CVPPPL) for providing a term loan of Rs 1,869.26 crore.

The loan will be utilised for the development, construction and operation of the greenfield Kiru Hydro Electric Project (4x156 MW) on Chenab river located in Kishtwar district of Jammu and Kashmir.

Kiru Hydro Electric Project (624 MW), is a run-of-river scheme proposed on Chenab and is about 42 km from Kishtwar. The project envisages the construction of a 135-metre-high dam and an underground powerhouse with 4 units of 156 MW each.

The agreement was signed in the presence of CVPPPL Managing Director Ramesh Mukhiya, and Deputy General Manager Rishabh Jain from REC Limited.

CVPPPL is a Joint Venture Company between NHPC (51 per cent) and JKSPDC (49 per cent) formed at the initiative of the Jammu and Kashmir government and the Central government to harness the vast hydro potential of Chenab river.

The company was incorporated in 2011.

CVPPPL has been entrusted with the construction of Kiru HE Project (624 MW), Pakal Dul HE Project (1,000 MW), Kwar HE Project (540 MW), & Kirthai-II HE Project (930 MW) on Build, Own, Operate and Maintain (BOOM) basis with an aggregate installed capacity of 3,094 MW.