The Neelum-Jhelum hydropower project has been non-operational since July 6 due to the 3.5km Tail Race Tunnel (TRT) collapse. The estimated cost is Rs2.50 billion as construction cost and Rs20 billion as a business loss.
The work on the project will start in February 2023; however, the project will lose Rs20 billion by February 2023. An NJHPCL official said
The official stated both the head, TRT and business loss are covered by the insurance arrangement; therefore, Wapda will not face the loss.
The official also confirmed that NICL has 7% shares and Chinese firms 93%. in the insurance amount. And they will share the cost incurred to make the project operational.”
Since the project’s COD was in April 2018, the insurance company has been getting Rs1 billion from NJHPCL, and so far, Rs4 billion have been received by the insurance company. Now they will pay the damage cost of Rs2.5 billion and a business loss of Rs20 billion.
The Neelam-Jhelum hydropower project generates a business of Rs48-50 billion.
The official confirmed that in three months of the summer season, four project turbines become operational; in six months, three units and in three months of winter, only one unit runs depending on water flows.