The Cabinet Committee on Economic Affairs (CCEA), on Wednesday, approved the 540 Megawatt (MW) Kwar Hydro Electric Project located on river Chenab in the Kishtwar district of Jammu and Kashmir (J&K) at an investment of ₹4,526.12 crore. The project will be implemented by Chenab Valley Power Projects (CVPPL), a joint venture between NHPC and JKSPDC. The project will generate 1,975.54 million units (MU) in a 90 per cent dependable year, said the Power Ministry in a statement. The Centre is extending a grant of ₹69.80 crore towards the cost of enabling infrastructure and also supporting the Union Territory by providing a grant of ₹655.08 crore for equity contribution of JKSPDC (49 per cent) in CVPPPL, it added.  NHPC will invest its equity (51 per cent stake) of ₹681.82 crore from its internal resources. The Kwar Hydro Electric project will be commissioned within 54 months, and the power generated from the project will help in balancing the grid, improving the power supply position. The government of UT of J&K, in order to make the project viable, is extending exemption from levy of water usage charges for 10 years after commissioning of the project, reimbursement of State’s share of GST (SGST), and waiver of free power at a rate of 2 per cent per year in a decremental manner. This means free power to J&K would be at 2 per cent in the first year after commissioning of the project, and it will thereafter increase at a rate of 2 per cent every year and 12 per cent from the sixth year. The construction activities of the project will result in direct and indirect employment to around 2,500 persons, and will contribute in overall socio-economic development of the Union Territory of J&K.  Further, the UT of J&K will benefit from free power of around ₹4,548.59 crore and ₹4,941.46 crore with water usage charges from Kwar Hydro Electric project during the project life cycle of 40 years.