It seems that stars do not favour final solution to the power problem of the State. Some mysterious hand is moving behind the curtain to deny the State the benefits of its immense water resources. It is difficult to lay finger on precise reasons why the State is faced with this situation. Of course, shortage of power in a national phenomenon and J&K State cannot be singled out for this deprivation. Overall shortage is the result of population explosion, urbanization, lack of proper planning in generating and distributing power and above all irresponsible elements in the civil society.
Our State has its share of power woes. However, our woes become more poignant when we consider that we have no shortage of water resource for generating hydroelectric power. Apart from financial constraints, which are surmountable by seeking funding from agencies on national and international level, we must agree to the reality that we are faced with deficiency in planning and execution. Moreover, politics and vested interests play major and decisive role in the entire effort. Let us concretize the argument. Hyderabad-based M/s GVK company was formally given the contract of execution of 850 Mega Watt Ratle Hydroelectric Project on river Chenab in Kishtwar district. On completion, the project would have immensely improved power supply position in the State and particularly in the province of Jammu. The Company started the project in right earnest, moved machinery, engaged labour and raised the infrastructure. The Power Department was banking on this project as one supposed to go a long way in revolutionizing power supply position in the State.
But suddenly, Chairman of the M/s GVK, Dr G V Krishana Reddy has informed the State Government that his company had backed out of the agreement on Ratle Hydroelectric Project. Needless to mention that the project was awarded to the company on tariff based international competitive bidding process for development on Built-Own-Operate-Transfer (BOOT) basis for a period of 35 years. Sources have not disclosed reasons that made the company take this decision. Not only that, the Company has gone ahead with the winding exercise without waste of time which is an indication that there seems little rather no chance of resolving the issues that have cropped up and made the company take such a decision.
In the first place, consequences of company’s decision to wind up are grave. Hundreds of labourers will be thrown out of work despite the fact that they were thinking of a long stint with the company. The Company had engaged buses for transportation to schools of the kids of the families whose land was acquired for the project under Corporate Social Responsibility Scheme. It has given one month advance notice to the owners of all those accommodations, which were being used as guest houses and offices both in Drabshalla area of Kishtwar and in Jammu.
In the second place, very surprising thing about this development is that the Government is not reacting to the backing out decision of the Company although, as per reports, there are provisions in the agreement those stipulate penalties on either side in case of backing out or violating the clauses of the agreement. The simple logic is that if the Government feels that the Company has taken a unilateral decision and thus has violated the clauses of the agreement, it should take legal action so that the Company does escape scot free. But if the State Government is not inclined to take any retaliatory action and safeguard the interests of the State, the simple inference is that it has skeletons up its cupboard. This is further strengthened by the fact that the Government has not disclosed the reasons given by the company for backing out finally. It is pertinent to state that earlier also; some contractual companies had problems with the administration and complained about bottlenecks created for them. It is common sense that before handing in the letter of backing out and beginning the winding exercise the said company must have tried all possibilities to resolve the logjam. Whatever the truth, the Government has only two options. One is to take action under law and the clauses of the agreement against the said company and the other option is to remove the bottlenecks and assure the company that the clauses of the agreement will be adhered to at all costs.
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