Rates settled at 8 & 8.5 pc of total costs
JAMMU, Jan 17: In a significant decision that would lead to immediate start of held-up schemes of power development, the State Government today finalized three Central Public Sector Undertakings (CPSUs) for initiating works in eight districts after negotiating the rates from 12 per cent of the project costs to 8 and 8.5 per cent.
The agreement was cleared at a high-level meeting between State Government, Union Power Ministry and top officials of CPSUs in New Delhi.
Three CPSUs, which have been picked for allotment of works after negotiations, included Rural Electrification Corporation (REC), Power Grid Corporation of India Limited (PGCIL) and Power Development Corporation Limited (PDCL).
Deputy Chief Minister Dr Nirmal Singh, Incharge Power Development Department, who led Jammu and Kashmir delegation at the meeting, told the Excelsior that rates have considerably been brought down from initial 12 per cent of project costs to 8 per cent for transmission lines and 8.5 per cent for distribution.
As per the agreement, the CPSUs will now take up works under various schemes in eight districts immediately including Leh, Kargil, Pulwama, Shopian, Ganderbal, Udhampur, Reasi and Ramban followed by others.
“The works will be completed within 30 months,’’ official sources said.
They added that the Central PSUs have taken up works in various parts of the country at minimum rate of 10 per cent (of the total cost of project) at Union Territory of New Delhi and maximum up to 15 per cent. In case of Jammu and Kashmir, they had been asking for 12 per cent charges and finally came down to 9.75 per cent. After further negotiations taken up by the State Power Ministry, they stuck to 9.25 per cent.
However, during today’s meeting, the rates were finalized at 8 per cent for transmission lines and 8.5 per cent for distribution excluding taxes, which was much lower from other parts of the country.
Total works of power under various Centrally Sponsored Schemes to the tune of Rs 2000 crores will be executed. Initially the Central PSUs would take up works to the tune of Rs 600 crores in eight districts of the State.
“The Union Power Ministry has agreed to bear the losses, if any,’’ sources said.
The Central schemes, the works under which will be executed by the CPSUs, included Prime Minister’s Development Package (PMDP) and Deen Dayal Upadhyaya Grameen Jyoti Yojana (DDUGJY) among others.
Deputy Chief Minister Dr Nirmal Singh, Finance Minister Dr Haseeb Drabu, Union Power Secretary, Union Joint Secretary Power, Chief Managing Directors (CMDs) of Central PSUs, Commissioner/Secretary, PDD, J&K Hridesh Kumar and Officer on Special Duty to Deputy Chief Minister, Shakti Pathak attended the meeting among others.
Sources said another Central PSU, TCIL, which was part of Communications Ministry, had quoted 6.5 per cent rates for taking up these works. But during today’s presentation, it was found that they had no power related experiences and were engaging in laying telephone lines only.
According to sources, Rs 68 crore worth works under ‘Power For All’ in 53 left-out villages were also being given to CPSUs. The Centre has fixed November 2018 as deadline under the scheme ‘Power For All’. Out of 102 villages, where there was no power, work has been completed in 20-odd villages while 53 villages in far-off areas will be left after March-April, which fall in Ladakh, Gurez, Kishtwar etc.
Sources said survey has also been started for executing power works under ‘Soubaghaya’ scheme of the Centre Government.
Sources said during the meeting of Project Monitoring Agency (PMA) and Project Implementing Agency (PIA), extensive deliberations took place with Central PSUs on allotment of power works under Centrally Sponsored Schemes in power sector. Central Schemes like PMDP, IPDS, DDUGJY, RGGVY-II and R-APDRP (Part-B) were also district at the meeting, which took place at Shram Shakti Bhawan in the Union capital.
Sources said the finalization of rates with three CPSUs would lead to speedy implementation of various power related schemes as the CPSU CMDs assured at the meeting that they would take up execution of works allotted to them immediately.
The works are scheduled to be completed in 30 months, sources said.