NHPC's J&K Hydropower Project Explores ₹18,700 Crore Debt Financing
The Indian power ministry is actively exploring the use of subordinated debt to finance NHPC’s ambitious Sawalkote hydropower project in Jammu and Kashmir. This strategic financing approach aims to secure low-interest capital for the substantial development, which carries an estimated project cost of ₹31,380 crore. The project awaits final approvals, marking a critical juncture in its progression.
This initiative underscores India’s accelerated push towards developing large-scale hydropower projects, particularly those situated on western rivers. The government’s focus on boosting renewable energy capacity through hydro power is further evidenced by recent approvals granted to other major projects in Arunachal Pradesh. The potential deployment of subordinated debt for the Sawalkote project signals a creative financial strategy to de-risk and advance significant infrastructure investments in the country’s energy sector.
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