Centre approves Rs2,614 crore investment for Sunni dam hydro electric project

5 Jan 2023 , 10:00 AM

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the investment for 382 MW Sunni Dam Hydro Electric Project in Himachal Pradesh by SJVN Limited, for an estimated cost of Rs2614.51 crore.

This contract value includes Rs13.80 crore as budgetary support from Government of India for cost of enabling infrastructure. Ex-post facto approval is given for cumulative expenditure incurred amounting to Rs246 crore till January, 2022.

Accordingly, Project cost of Rs2614 crore included hard cost amounting to Rs2246.40 crore, Interest During Construction (IDC) and Financing Charges (FC) of Rs358.96 crore & 9.15 crore respectively. The revised cost sanctions for cost variations due to quantity changes (including additions/ alterations/ extra items) and time overruns due to the developer shall be capped at 10% of sanctioned cost.

Keeping in view the aims and objectives of Atmanirbhar Bharat Abhiyan, the present proposal for setting up of 382 MW Sunni Dam HEP by SJVN shall provide various benefits to local suppliers/ local enterprises/ MSMEs and shall encourage entrepreneurship opportunities within the country besides promoting employment and socio-economic development of the region.

The implementation of the project shall generate direct & indirect employment to about 4000 persons during peak construction of the project, as per the official statement.

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