JK To Get 1300 MW From CVPPPL: Khan28 June 2011
Srinagar: Jammu and Kashmir shall be entitled to a share of 1300 MWs of energy from the three power projects to be established by the state in joint venture with the National Hydro Power Corporation (NHPC). “The state will turn into power surplus region in next seven years after three mega power projects are established by the new joint venture company - Chenab Valley Power Projects Private Ltd (CVPPPL),” chairman Board of Directors CVPPPL, MY Khan told a press conference here Tuesday. He was flanked by Company's Managing Director S C Gupta and General Manager S K Raina. CVPPPL, a joint venture company between J&K State Power Development Corporation, NHPC and Power Trading Corporation of India is setting up three hydro power projects in the Chenab basin with a cumulative generation capacity of 2120 MWs. The projects include Pakal Dul (1000 MW), Kiru (600 MW) and Kawar (520 MW). CVPPPL was given approval by the Registrar of Companies, government of India earlier this month. “Our share from the projects will be around 1300 MWs which will take care of our power requirements and we will be able to export some energy out of it,” Khan said. J&K is presently grappling to better the state’s power scenario. Against a peak demand of around 1700 MW the local generation hover around 800 MWs. The remaining energy is imported from the northern grid. Last year the state’s Power Purchase Bill was around Rs 2500 crore, while the revenue in the power sector was only Rs 1200 crore. Khan said the identified potential of the Chenab basin is around 10000 MWs. “Once this potential is harnessed our earnings will jump up to between Rs 10000 crore to Rs 15000 crore by exporting the energy. There will be no power shortage in J&K by 2018 and in next 8 to 10 years we will earn as much as our budget is presently,” Khan said. Giving details Khan said Pakal Dul is scheduled for completion in next 6-years while as the completion target for Kiru and Kawar are four to five years. The power company has received environmental clearance for Pakal Dul and Supreme Court has also cleared its execution. The company will be inviting tenders at global level for setting up the project and their monitoring for implementation. “The projects will start generation by next six to seven years,” Khan said. As per the agreement the share of partners JKSPDC, NHPC and PTC in the company shall be in the ratio of 49:49:2 respectively and of the total power generated from the projects the share of JK shall be 62 percent. Besides, J&K will have first right of refusal for the remaining 941 MWs from the three projects. As per the rough estimates the projects will involve an investment of Rs 17000 crore to Rs 18000 crore. “NHPC is committed so far its share of funding is concerned and state will also chip in with its portion of funds,” Khan said and added that CVPPPL is the beginning not the end. “Many more projects will come up,” he said. The projects are targeted to generate employment for 7000 people -1000 direct employment and another 6000 indirect. Khan said while the top level posts will be occupied by NHPC and J&K in 49:49 ratio, the position at lower level will be in the ratio of 80:20 for the state. “Maximum employment will go to J&K,” Khan said. The projects will continue to be managed by the partners NHPC, J&K Power Development Corporation and Power Trading Corporation, Khan said. “No there is no need to do that (transfer projects to the state). We are part of the company holding 49 percent share,” Khan responded to a question whether the projects will be transferred to state at any point of time. Responding to another question whether NHPC as one of the partners in the company will be paying the water usage charges for exploiting states water resources, Khan said the company shall have to follow the state’s rules.