IIT Delhi completes asset mapping, Govt set to counter GVK claims
Project facing cost escalation of Rs 740 crore
Mohinder Verma
JAMMU, Oct 14: Finally, the State has approached the Union Government with five Joint Venture models for re-start of work on 850 Mega Watt Ratle Hydroelectric Project on river Chenab in Kishtwar district, whose fate is hanging in balance since 2014. Moreover, State is all set to counter the claims of M/s GVK Power about quantum of work already executed as the Indian Institute of Technology (IIT) Delhi has completed the asset mapping and is going to submit report to the arbitrator next month.
Official sources told EXCELSIOR that as per the decision taken by the State Administrative Council headed by Governor Satya Pal Malik in its meeting held on September 5, 2018, the Power Development Department has submitted five models of Joint Venture based on ownership proportion with 15% to 25% free power including Local Area Development Fund to the Union Ministry of Power for arriving at the best suitable option.
The State Administrative Council had accorded sanction to the formation of a separate Joint Venture company having Government of India (Central PSU) and Government of J&K (State Power Development Corporation) as the two partners owning defined shares in the company for the execution of 850 MW Ratle Hydroelectric Project and its transfer to the State within a period of seven years from the start of its commercial operation.
Stating that Union Power Ministry has been requested to take early decision on Joint Venture, sources said, “all the Joint Venture models will be favorable to Jammu and Kashmir with majority ownership remaining with State ranging from 51% to 90% ownership”, adding “soon after its formulation the Joint Venture company will take decision about modus operandi to be adopted for re-start of work on the project, which was abandoned by M/s GVK Power selected through tariff based international competitive bidding in 2014”.
“Union Power Ministry is aware of the fact that this project is already facing cost overrun of Rs 739.98 crore as the original cost was Rs 5517.02 crore and latest anticipated cost is Rs 6257 crore as such the State is expecting early decision on Joint Venture company model”, sources further said.
It is pertinent to mention here that Ratle is run of the river project located on River Chenab near Drabshalla village in Kishtwar district and lies in between Dulhasti Hydroelectric Project on its upstream and Baglihar Hydroelectric Project on its downstream. Among the bigger upcoming projects in erstwhile Doda district, this project is considered as the most conveniently located and most amenable to expeditious development.
Meanwhile, State is all set to effectively counter the claims of M/s GVK Power about the quantum of work already executed on the project as the Indian Institute of Technology (IIT) Delhi, as desired by the arbitrator, has completed the mapping of assets of the project and has communicated to the State that it will submit report next month.
“The decision to get assets mapping conducted through IIT Delhi was taken by the arbitrator as State is of the view that the claims projected by M/s GVK Power are much beyond the actual work done on the ground”, sources said, adding “there is huge variation between the actual work and the claims of assets creation by the company”.
The arbitrator has already given go ahead to the State Government for re-start of work on the project, sources said, adding “the arbitrator while rejecting the claims of the M/s GVK Power had categorically conveyed that arbitration doesn’t mean allowing fate of the project to remain hanging for unspecified period”.
When contacted, Commi-ssioner Secretary to Government, Power Development Department, Hirdesh Kumar Singh confirmed that five Joint Venture models have been submitted to the Union Power Ministry. “Now, we are on the right track and hopefully work on the project will begin shortly”, he added.
In response to a question, he said, “the claims of M/s GVK Power about already executed work are not unfounded and they are overestimating the figures. However, the report of IIT Delhi will prove them wrong”.
Follow our WhatsApp channel
