No headway on taking back power projects from NHPC: Govt

‘Rangarajan Committee, CSC reports remain unimplemented’

*Only exchange of communications between JKPDC, NHPC

Mohinder Verma

JAMMU, Mar 24: There is no headway on taking back power projects from National Hydroelectric Power Corporation (NHPC) even after explicit recommendations of Rangarajan Committee and Cabinet Sub-Committee (CSC) and exchange of communications between Jammu and Kashmir Power Development Corporation (JKPDC) and country’s public sector hydropower company.

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This was revealed by Chief Minister Omar Abdullah, who is also the Minister Incharge Power, in a written reply to the question of MLA Irfan Hafiz Lone in the Legislative Assembly today. The MLA had asked whether the Government was contemplating to take up the issue of return of power projects in view of generation deficit.
The Chief Minister informed that erstwhile State of Jammu and Kashmir transferred 690 Mega Watts Salal Hydroelectric Project (HEP), 480 MW Uri-I HEP, 390 MW Dulhasti HEP, 240 MW Uri-II, 330 MW Kishanganga, 120 MW Sewa-II, 1020 MW Burser, 45 MW Nimo Bazgo, 44 MW Chutak and 1000 MW Pakaldul to NHPC vide Memorandum of Understanding (MoU) of July 2000.
Further, vide MoU dated January 3, 2021, 1856 MW Sawalkote HEP, 258 MW Dulhasti-II and 240 MW Uri-I Stage-II were allotted to NHPC for development on BOOT basis for a period of 40 years.
Out of these, eight projects-Salal, Uri-I, Dulhasti, Uri-II, Kishanganga, Sewa-II, Nimo Bazgo and Chutak HEPs have been commissioned while as Burser HEP is still at DPR stage with NHPC and Pakaldul has been transferred to Chenab Valley Power Projects Limited (CVPPL).
“The Rangarajan Committee in its report of November 2006 had recommended the transfer of Dulhasti Project from NHPC to J&K Government. However, this major recommendation was turned down by NHPC”, the Chief Minister said, adding “subsequently in the month of June 2011 a Cabinet Sub-Committee was constituted as per the Cabinet Decision to look into various issues arising from the terms and conditions of entrustment of hydroelectric projects to NHPC”.
The Cabinet Sub-Committee recommended that J&K Government should push for a commitment to allocate 47% of the power generated from Salal HEP and seek compensation for the losses incurred due to reduced allocations and reversion of ownership of Salal HEP to J&K on depreciated cost. It was also mentioned by the Cabinet Sub-Committee that J&K has the option to buy back Uri HEP and should do so at its depreciated value following the necessary transfer of ownership.
Further, it was recommended that construction of Stage-II of Uri HEP should be undertaken by the J&K Government after the project ownership is transferred to State and transfer of Dulhasti should be actively pursued and enhancement in free power quota from Central Projects be sought. Moreover, the Cabinet Sub-Committee recommended that implementation of Stage-II of Dulhasti should be contingent upon the successful transfer of ownership of 390 MW Dulhasti HEP to J&K.
“The July 2000 MoU allows NHPC to fund, execute and operate certain projects while retaining ownership with J&K. It includes a provision for transferring these projects back to J&K, which should establish modalities to repurchase them when the State is in a position to do so compensating for their deprecated cost”, Chief Minister said quoting the recommendations of Cabinet Sub-Committee, adding “all these recommendations were accepted by the Cabinet and it was decided to take over Salal, Dulhasti, Uri-I HEPs and other projects transferred to NHPC vide MoU of July 2000”.
Thereafter, the matter was taken up with NHPC and numerous communications were exchanged between J&K Power Development Corporation and country’s public sector hydropower company, which was even given the copy of the recommendations of Cabinet Sub-Committee, the Government informed the Legislative Assembly.
However, NHPC neither responded to the repeated requests so far nor did it appear to do so to take the recommendations of the Cabinet Sub-Committee to logical conclusion, the Chief Minister said while disclosing that J&K Power Development Corporation, in the absence of details from NHPC, even worked out the cost of these projects on its own.
“Thereafter, no further headway could be made in this regard”, he added.