The Cabinet Committee on Economic Affairs has approved the proposal for construction of a 220kV Transmission System from Alusteng (Srinagar) to Leh (via Drass, Kargil & Khalsti 220/66kV PGCIL substations) and 66kV Power Grid Corporation of India Limited (PGCIL) interconnection system for Drass, Kargil, Khalsti and Leh substations in Jammu & Kashmir (J&K) at an estimated total cost of Rs. 1788.41 Crore.

The transmission project shall provide grid connectivity and reliable power supply to the strategically important Ladakh region.

The project will be implemented through PGCIL, a central transmission utility, within 42 months from the date of release of the first instalment of funds. The project cost will be borne by the Government of India and the Government of J&K in the ratio of 95:5 to ensure interest of the Government of J&K in the project.

Upon commissioning of the transmission system, the same shall be transferred to the State of J&K Government who will carry out Operation & Maintenance (O&M) and other related activities at their own cost as per the terms & conditions in the Memorandum of Understanding (MoU) to be signed in this regard.

Background:

The electric supply system of Ladakh Region in the State of J&K is currently isolated from the Northern Grid and is fed through local small hydro generation and diesel generator sets. Being an area of defence establishments and strategic importance, there is a need to improve the reliability of power supply through inter-connection with the Northern Grid. Accordingly, a 220KV Transmission System has been planned. The difficult terrain has left the Ladakh region isolated with no electrical connectivity with the rest of the grid. The region is experiencing an energy shortage of about 95 percent. The cost of local diesel generation is very high (about Rs 16-17/unit). Being an area of strategic importance, reliable power supply arrangement is very crucial.

Transmission infrastructure approval enables grid connectivity for Ladakh with central-state funding and state takeover for operation. The Cabinet Committee approved construction of a 220kV transmission line from Alusteng to Leh with 66kV interconnections, to be implemented by the central transmission utility within 42 months. Project costs will be shared by the Government of India and the State in a 95:5 ratio. After commissioning the system will be transferred to the State Government, which will undertake operation and maintenance under a Memorandum of Understanding.