Power utility NHPC today said it will invest Rs 2,400 crore on setting up

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three projects in J&K under a joint venture with Jammu & Kashmir State Power Development Corporation and PTC India.

The joint venture entity -- Chenab Valley Power Projects Pvt Ltd -- will implement three projects having a total capacity of over 2,100 MW. These are: Pakal Dul (1,000 MW), Kiru (600 MW) and Kwar (520 MW).

"The total investment to be made by the joint venture firm will be around Rs 15,000 crore. NHPC's equity contribution toward the entity will be around Rs 2,400 crore," NHPC Chairman and Managing Director A B L Srivastava told PTI in an interview.

He said the joint venture company's first project -- Pakal Dul -- is expected to be complete in six to seven years.

The three projects will be funded in a debt-equity ratio of 70:30.

Chenab Valley Power Projects was incorporated earlier this month.

In December, 2010, Jammu & Kashmir State Power Development Corp, NHPC and PTC India had inked a promoter's agreement for setting up the new entity.

Jammu & Kashmir State Power Development Corp and NHPC would have 49 per cent stake each in the joint venture firm, while the remaining shareholding would be with PTC India.

Out of NHPC's installed capacity of about 5,300 MW, over 1,600 MW comes from J&K.

The company is presently operating four projects in J&K, having a total capacity of 1,680 MW. These are: Salal (690 MW), Uri-I (480 MW), Dulhasti (390 MW) and Sewa-II (120 MW).

The state-run firm plans to add another 690 MW of capacity by commissioning five projects -- Chutak (44 MW), Uri-II (240 MW), Chamera-III (231 MW), the first unit of Parbati-III (130 MW) and Nimmo-Bazgo (45 MW) -- by March, 2012.

Currently, NHPC -- the country's largest hydro electric power producer -- is engaged in the construction of ten projects at various locations in the country, having a total installed capacity of 4,502 MW.