The approval will now propel development of the 450-MW Baglihar-II project, where 40% of the underground work had been completed; over-ground construction is expected to finish on schedule by 2015-16.
The Baglihar-II project, located on the River Chenab in Ramban district, is projected to generate 1,300 million units of power a year.
Development at the project includes civil work undertaken by New Delhi-based Jayprakash and electromechanical work executed by Voithhydro.
J&K SPDC also owns the 450-MW Baglihar- I project, the dam of which will also provide for the phase II of the power project.
SPDC executive director Zahoor Ahmad said that the state obtained INR16.79bn ($31.25bn) from Power Finance Corporation and INR5bn ($9.3bn) from JK Bank for the project, amounting to a cost of INR31.13bn ($0.57bn).
