Indian conglomerate GVK has commenced operations at the 850MW GVK Ratle hydroelectric power project on the river Chenab in Jammu and Kashmir, as Prime Minister Manmohan Singh laid foundation for the project.

The build, own, operate and transfer contract for INR55bn ($912.6m) project was awarded to GVK’s subsidiary GVK Developmental Projects by state government’s Power Development Department (PDD) through Jammu and Kashmir State Power Development.

Commenting on the event, Singh said the government is investing nearly INR2.62bn ($43.4m) towards environment management and rehabilitation and resettlement of the communities affected by the Ratle project.

"I hope that every effort will be made to complete the project by its scheduled deadline of February 2018," added Singh.

Prime Minister has also raised concerns over power production of 2,500MW in Jammu and Kashmir, against an estimated potential of 14,000MW of power from rivers like Chenab, Jhelam and Sindh.

"Central and state government are trying to harness the remaining potential," noted Singh.