Cabinet approves 13 GW green energy corridor in Ladakh

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, today approved the construction of an inter-state power transmission system for a 13 gigawatt renewable energy project in Ladakh.

The Green Energy Corridor (GEC) Phase-II project is targeted to be set up by 2029-30 with a total estimated cost of ₹20,773.70 crore and central financial assistance at 40% of the project cost ₹8,309.48 crore.

"Keeping in view the complex terrain, adverse climatic conditions and defence sensitivities of Ladakh region, Power Grid Corporation of India Limited (POWERGRID) will be the implementing agency for this project," the government says in a statement.

The transmission line for evacuating this power will pass through Himachal Pradesh and Punjab up to Kaithal in Haryana, where it will be integrated with the National Grid.

An interconnection is also planned from this project in Leh to the existing Ladakh grid so as to ensure a reliable power supply to Ladakh. It will also be connected to the Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir.

"State of the art Voltage Source Converter (VSC) based High Voltage Direct Current (HVDC) system and Extra High Voltage Alternating Current (EHVAC) systems will be deployed," the government says.

The project will entail setting up of 713 km transmission lines (including 480 km HVDC line) and 5 GW capacity of HVDC terminal each at Pang (Ladakh) and Kaithal (Haryana), it adds.

The project will contribute to achieving the target of 500 GW of installed electricity capacity from non-fossil fuels by the year 2030. The project will also help in developing long-term energy security of the country and promote ecologically sustainable growth by reducing carbon footprint, says the Centre.

It will generate large direct and indirect employment opportunities for both skilled and unskilled personnel in power and other related sectors, especially in the Ladakh region, the government says.

This project is in addition to Intra-State Transmission System Green Energy Corridor Phase-II (InSTS GEC-II), which is already under implementation in the States of Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh for grid integration and power evacuation of approx. 20 GW of RE power and is expected to be completed by 2026.

Other Cabinet decisions

• The Union Cabinet also hiked the dearness allowance (DA) for central government employees from 42% of the basic pay or pension to 46% to compensate for price rise. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be ₹12,857 crore per annum. This will benefit about 48.67 lakh central government employees and 67.95 lakh pensioners.

• The Cabinet also approved the increase in the Minimum Support Prices (MSP) for all mandated rabi crops for marketing season 2024-25 to ensure remunerative prices to the growers for their produce. The absolute highest increase in MSP has been approved for lentil (masur) at ₹425 per quintal followed by rapeseed & mustard at ₹200 per quintal. For wheat, an increase of ₹150 per quintal each has been approved.