NHPC Not Getting Any Project In Jammu And Kashmir

NHPC Not Getting Any Project In Jammu And Kashmir

17 February 2014
The Economic Times
Masood Hussain

Jammu: Chief Minister Omar Abdullah on Monday announced that the government has decided against offering any new project to the NHPC for implementation. The only available options are that either state will implement the projects itself or take a joint venture (JV) route. 'We are being asked about the projects that we have managed to get back from the NHOC,' Omar told Kashmir House of Elders. 'Let me be honest to say that we made all efforts but we failed. We talked to Prime Minister but we failed to convince the (union) Power Ministry.' Now, Omar said, the J&K government took a conscious policy decision. 'We are not giving any project to NHPC for implementation in J&K unless they visit their policy,' Omar said. J&K and many other states have been asking NHPC to change its royalty payment system and increase it from 12 per cent to somewhere upward of 20. But the demand has not been accepted by the NHPC or the power ministry. 'We now have only two options for implementing the projects - either to implement at the own or to take a JV route.' Since early 1970s, J&K government has handed over nine major projects totaling 3359 MWs to NHPC of which seven projects with cumulative installed capacity of 2009 MWs are into generation. From its four projects, NHPC generated 8684 million units (making 46.48 per cent of its cumulative generation from all projects across India) in 2011-12 and 8771 million units (46.35 per cent of cumulative energy portfolio) in 2012-13. As NHPC has allegedly reneged from its earlier promise of returning the projects and rejecting the idea of increasing the royalty, the J&K government has decided against offering NHPC a solo opportunity. Instead, it started levying water usage charges that, according to Omar Abdullah, fetched Rs 1313 crore to the public exchequer so far. 'NHPC was supposed to build Dul-Hasti-II but it will now be implemented through JV so will be Uri-II,' Omar said. Interestingly, however, Uri-II, an NHPC project, has gone into generation last autumn. 'But we started changing the energy scenario of the state,' Omar said. 'In last 60 years, we had implemented projects with installed capacity of 750 MWs but in last five years we have initiated projects having 1500 MW capacity and will top it up by another 1000 MW this year.' Omar said per capita consumption of energy in J&K is better than national average and it will improve only when the new projects will get commissioned. The state government has already stated that J&K has started exhibiting a change in being one of the worst states on transmission and distribution losses front. 'Our AT&C losses have gone down to 63.80% during the last year as compared to 72.06% in 2008-09,' Finance Minister Abdul Rahim Rather said. 'We believe it will reach 59.00% during the current fiscal indicating over 13 per centage points improvement.' T&D losses, according to Rather has gone down from 63.10% in 2008-09 to 52.00% during the current financial year, exhibiting an improvement of more than 11 per centage points.