ISLAMABAD, July 14 (APP): The federal government has allocated Rs 42 billion under Public Sector Development Programme (PSDP) for the year 2016-17 for Dasu hydropower project, being constructed to generate 4,500 MW of electricity.

The dam to be completed in two stages, would add 2160 MW electricity to the national grid in first stage.

According to official sources in the Ministry of Planning, Development and Reforms here, the PML-N government had pledged to resolve the chronic energy crisis in the country before coming to power and demonstrated its commitment when it was able to bring down the loadshedding hours to six to eight hours compared to 18-20 hours in 2013.

The development of indigenous energy resources, such as coal, hydro, alternative and renewable sources, is critical for sustainable economic growth, as envisaged in the Vision 2025.

As a result of government continued focus, the energy sector is one of the major recipients of Federal PSDP share.

It may be mentioned here that the Dasu Dam is a gravity dam currently being constructed on the Indus River near Dasu in Khyber Pakhtunkhwa Province (KPK).

The 242 meter (794 feet) tall dam will support a 4,320 MW hydroelectric power station which will be built in two 2,160 MW stages.

Water from the reservoir will be diverted to the power station located about 3.5 km downstream.

The first stage was approved by the Executive Committee of the National Economic Council on March 29, 2014. It will cost an estimated US$ 4.278 billion.