Mohinder Verma
JAMMU, June 18: In order to bail out Jammu and Kashmir State Power Development Corporation of the financial crisis, the State Government is going to carry out some amendments in the Water Resources (Regulation and Management Act), 2010.
A proposal in this regard is being placed before the State Cabinet, which is meeting under the chairmanship of Chief Minister, Omar Abdullah at Civil Secretariat, Srinagar tomorrow afternoon. The Cabinet is also likely to order transfers and postings in the administration.
Authoritative sources told EXCELSIOR that since the implementation of the Water Resources (Regulation and Management) Act, the NHPC has been charged with Rs 1899.91 crore on account of Water Usage Charges, which has been paid to the State Government.
Out of Rs 1899.91 crore, an amount of Rs 1198.57 crore has been deposited into the Water Usage Fund and Rs 701.34 crore received through treasury route prior to the opening of the Water Usage Fund, sources said.
The Jammu and Kashmir State Power Development Corporation has deposited Rs 20 crore in the year 2011-12 on account of Water Usage Charges. Thereafter, no Water Usage Charges were deposited by JKSPDC, the arrears on account of which are to the tune of Rs 1072.75 crore till December 2013, sources said while disclosing that this situation emerged for the JKSPDC as Power Development Department failed to clear the energy charges towards the Corporation.
Sources disclosed that following the implementation of the Act, NHPC moved Central Electricity Regulatory Commission (CERC) and bagged relief in the shape of increasing the generation cost of the power and selling of the same at the enhanced rate within Jammu and Kashmir.
Similarly, JKSPDC moved State Electricity Regulatory Commission (SERC) seeking relief on the analogy of NHPC but its petition was rejected by the SERC on the ground that this decision would result into adverse impact on the power tariff within the State.
Keeping in view the impending financial crisis for the JKSPDC, a proposal has been mooted seeking an amendment in the Water Resources (Regulation and Management) Act to enable JKSPDC to liquidate the water usage charges out of the fund created under the Act in respect of power generated and sold within the State.
The proposal about amendment in the Act has been formulated by the Department of PHE, Irrigation and Flood Control Department with the consent of the Finance, Planning and Development and Law Departments, sources said, adding the amendment will enable utilization of amount of the Water Usage Fund set up under Section 185-A of the Jammu and Kashmir Water Resources (Regulation and Management) Act, 2010 for the payment of water usage charges levied on generation in respect of power sold within the State so as to reduce the impact on the power tariff within the State in the interest of the public.
According to the sources, the Cabinet is also likely to order transfers and postings in the administration.
“A proposal in this regard was also discussed in the last Cabinet meeting but no decision could be taken because of varied reasons”, they said, adding “there are all chances of the proposal being discussed in tomorrow’s Cabinet meeting”.
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