New Delhi, July 31 : The Cabinet Committee on Economic Affairs (CCEA) has approved the revised budget for the 'Dulhasti Hydro Electric Project' in Jammu and Kashmir.
Finance Minister P.Chidambaram said, "The cost of the project will be 5228 crore rupees, an increase of over 16 crore rupees due to escalation of cost of inputs."
The 390 MW Jammu and Kashmir hydro project has been constantly hit by delays and cost escalation problems. The project, built on River Chenab, was initiated by Prime Minister Indira Gandhi in 1983. The project is seen as significant as on the one hand it will provide electricity at a cheaper rate while on the other, it will generate employment opportunities for locals.
Jammu and Kashmir is entitled to 12 percent of royalty on power generated by the project.
Electricity generated from this project will be sold to Himachal Pradesh, Haryana, Punjab, Delhi, Uttar Pradesh, Chandigarh, Rajasthan and Uttaranchal.