June 2016 News

Govt Working Out Modalities For Reclaiming Power Projects From NHPC

18 June 2016
Rising Kashmir
Sumaiya Yousuf

Srinagar: The government Saturday said return of two power projects from NHPC to Jammu and Kashmir was an important part of the developmental agenda of PDP-BJP coalition government and it was working on transfer of these projects to the State. In a written response to a question by NC MLA Mohammad Akbar Lone, Deputy Chief Minister Dr Nirmal Singh, who also holds the power portfolio, informed the Legislative Assembly that in order to address the real sources of J&K's fiscal problem and pave way for making it a fiscally autonomous State, the government will work with Government of India (goI) to explore modalities for transfer of Dulhasti and Uri Hydro Power projects to J&K. 'As suggested by Rangarajan Committee report and the roundtable reports, we will work out modalities with GoI for transfer of the projects to the State,' he said. The DyCM informed the House that after the PDP- BJP formed the coalition government last year, he and Finance Minister Haseeb Drabu had met Union Power Minister Piyush Goyal and impressed upon GoI the need for transfer of 390-MW Dulhasti and 480-MW Uri power projects from NHPC to the state. He said the government would actively pursue transfer of hydel projects from NHPC and the budget provided funds for meeting the operation and maintenance cost of such projects to be transferred from NHPC. 'To work out the present cost of the power projects of NHPC in the state, an independent consultant was hired by State Power Development Corporation and based on the documents available in public domain like audited balance sheets and Central Electricity Regulatory Commission (CERC) order, the consultant had calculated the present cost of Salal, Uri-I, Dulhasti, Uri-II, Sewa-II, Nimo Bazgo and Chutak HEPs. The report of the consultant is under examination of J&K SPDC,' he said. Singh also informed the members that government would ensure J&K gets a share in one of the six Utlra Mega Thermal power projects. 'The government will also secure a share in the profits of NHPC emanating from J&K waters,' he said. Singh said the government will also revise all royalty agreements. 'A dedicated coal mine in Madhya Pradesh has been allocated to J&K with coal reserves of not less than 150 MMT for setting up a pit head thermal plant with equity support from GoI'.

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