Why in news:

• The Cabinet Committee on Economic Affairs, chaired by the Prime Minister has approved investment of Rs 2,614 crore for the 382 MW Sunni Dam Hydro Electric Project in Himachal Pradesh.

Key Points:

• The Run of River project being executed on Satluj river in Shimla and Mandi districts of Himachal Pradesh will have 71-meter-high concrete gravity Dam and six generating units in its surface Power House.
• The project shall generate 1382 million units annually and the levelized tariff of electricity generated will be R 3.90 per unit. The project is scheduled to be commissioned within 63 months of the commencement of construction works. The project is being financed on a 70:30 debt equity ratio and on completion it will earn 16.50% return on equity for SJVN.
• Sunni Dam Hydro Electric Project will provide 1382 MU of green energy to the grid and will reduce carbon dioxide emissions by 1.1 Million tons annually. This hydro project will play a crucial role in balancing the grid over the intermittent nature of solar and wind power. The commissioning of this project will contribute significantly towards the Government of India’s vision to provide Round the Clock Power to All.
• According to Nand Lal Sharma, chairman and managing director, SJVN, the Forest and Environment Clearances have already been accorded while Rs 266 crores have been spent on pre-construction activities. He further projected that the project construction activities will result in direct and indirect employment to around 4000 persons.
• Further, on commissioning, 13% of the electricity generated will be provided free of cost to Government of Himachal Pradesh including 1% for Local Area development fund. For the project life cycle of 40 years, this free power translates into benefits of Rs 2803 crore.
• It is worth mentioning here that to each Project Affected Family, 100 units of free electricity per month will be provided for ten years. The development of the project will also lead to betterment of roads, bridges, healthcare and other infrastructure and this will play a vital role in socio-economic development of the region.