Context (PIB):Ratle Hydro Electric Power Corporation Limited (RHPCL) signed a power purchase agreement (PPA) with Rajasthan for forty years.
A PPA allows the customer to receive stable and often low-cost electricity with no upfront cost while also enabling the generating company to take advantage of tax credits and stable, certain income.
The “Run of River” Ratle HE project is on River Chenab in Kishtwar (Jammu & Kashmir).
With a generation capacity of 850 MW, it also has a gravity dam.
Pakistan alleged in 2013 that the Project breached the Indus Water Treaty, but the World Bank approved the Project.
Indus Water Treaty (IWT)
India and Pakistan signed the IWT in September 1960.
The World Bank is also a signatory to the pact.
The treaty provides for river water sharing mechanisms and information exchange between the two sides on the use of the water of the Indus River system.
WesternRivers (Chenab, Jhelum, Indus) are allocated to Pakistan, while Eastern Rivers (Sutlej, Beas, Ravi) are allocated to India for unrestricted use.
India is left with 20% water rights, while Pakistan enjoys 80% water usage rights.
India can also utilise western rivers for agricultural usage and “run of river” projects.
A Permanent Indus Commission was also constituted as a dispute resolution body with an annual meeting requirement.
Unresolved disputes are referred to the World Bank-appointed Neutral Expert.
Chenab River
The Chenab originates near the Bara Lacha Pass in the Lahul-Spiti part of the Zanskar Range.
Two small streams on opposite sides of the pass, namely Chandra and Bhaga, join to form Chenab.
Hydroelectric Power
Hydroelectricity (HE), or hydroelectric power, is electricity generated by harnessing hydropower (waterpower) to rotate the power-generating turbine.
It can be Conventional dam-based, Pumped, Run of the river or Tidal based on the source’s potential and topography.
Run of the River Project
Water coming from upstream is utilised to rotate the turbine to generate hydropower.
Small or no reservoir is built on it, so any oversupply goes unutilised.
A constant supply of upstream water is required for it.
Other HE Projects on the Indus Basin
Kishanganga HE Project
It is a run-of-the-river project in Bandipora (Jammu and Kashmir).
It requires diverting water from the Kishanganga River through the tunnel to a power plant.
Pakistan objected to it, arguing it would impact water flow in the Kishanganga River (Neelum in Pakistan).
India won in The Hague’s Permanent Court of Arbitration (CoA) in 2013.
Kiru HE Project
It has a 624 MW installed capacity, proposed on river Chenab (Kishtwar district).
Pakal Dul HE Project
It is a reservoir-based scheme proposed on river Marusudar(right bank tributary of river Chenab) in Kishtwar (Jammu & Kashmir).
Dulhasti Power Station
It is run-of-the-river with an installed capacity of 390 MW to harness the hydropower potential of river Chenab (Kishtwar district).
Salal Power Station
It is a run-of-the-river scheme with an installed capacity of 690 MW to harness the hydropower potential of the Chenab River in the Reasi district of Jammu and Kashmir.