Government approves over Rs 2,600 crore investment for Sunni Dam hydro power project in Himachal Pradesh

The government on Wednesday approved Rs 2,614.51 crore investment for the 382 MW Sunni Dam Hydro Electric Project by state-owned SJVN Ltd in Himachal Pradesh.

"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 Ltd, for an estimated cost of Rs 2,614.51 crore, including Rs 13.80 crore as budgetary support from the Indian government for the cost of enabling infrastructure," an official statement said.

Ex-post facto approval is given for cumulative expenditure incurred amounting to Rs 246 crore till January 2022, it added.

​The project cost of Rs 2,614 crore included hard cost amounting to Rs 2,246.40 crore, Interest During Construction (IDC) and Financing Charges (FC) of Rs 358.96 crore and 9.15 crore, respectively, the statement said.

The revised cost sanctions for cost variations due to quantity changes and time overruns because of the developer shall be capped at 10 percent of the sanctioned cost.

The statement added that keeping the aims and objectives of the Atmanirbhar Bharat Abhiyan in view, the proposal would provide benefits to local suppliers, enterprises, MSMEs and encourage entrepreneurship opportunities within the country, and also promote the region's employment and socio-economic development.

The implementation of the project shall generate direct and indirect employment for around 4,000 persons during the peak construction of the project, the statement said.