The Jammu & Kashmir State Administrative Council (SAC) has approved the formation of a joint venture (JV) between the central government and the Jammu & Kashmir government for the development of the 850 MW Ratle hydroelectric project (HEP). The majority of the ownership of the project ranging from 51 per cent to 90 per cent is proposed to be with the state. The HEP will be transferred to the state within a period of seven years from the start of commercial operation of the project. The Ratle HEP was earlier being developed by the GVK Group but work on the project was halted in 2014 owing to agitation by locals, tariff issues and financing problems. The state government reportedly terminated the contract with GVK in February 2017.