JK takes up transfer of Dulhasti power project with 14th FC
Commission report to be tabled in parliament in budget session
The government has taken up the issue of transfer of 390 MW Dulhasti power project from the National Hydro Electric Power Corporation (NHPC) to the state with 14th Finance Commission and is expecting the Government of India (GoI) to make a commitment on it after Commission’s report is tabled in parliament during upcoming budget session.
“We have taken up the matter of return of Dulhasti power project to the state with 14th Finance Commission team earlier and the report of the Commission will be tabled in the parliament in the coming budget session,” said a top government official.
He said after handing over of power project was taken with the Finance Commission team, the State expects the commitment from GoI to transfer the project to J&K.
According to officials, since NHPC has been reluctant in handing over the project to the state, the government has informed 14th Finance Commission team that transfer of Dulhasti power project has been the long pending demand of J&K.
The government has projected to Finance Commission that GoI can compensate NHPC for transferring the project to the state.
According to sources, J&K Power Development Corporation (JKPDC) is working out the exact compensation that could be paid to NHPC through a Kolkatta based consultancy.
They said, state’s Finance department has conveyed to 14th Finance Commission that the NHPC could be compensated by GoI by paying near Rs 5,000 crores as a cost of the project to it in a period of 10-years.
“NHPC seems to be reluctant over transfer of project to the state and have not been cooperating with us to work out an exact compensation amount that could be paid to it for handing over the project to the state. It is due to this that the matter has been taken up with 14th Finance Commission so that it also comes up for discussion in the parliament,” said a senior government official.
While seeking devolution of central taxes and grants from the Finance Commission, the State has also brought to its notice that the transfer of the project to the state would have enabled J&K government to save Rs 3 000 crore on the purchase of electricity in the last 7 years.
Managing Director JKPDC, Mehraj Ahmad Kakroo, said the State government has asked them to work out the compensation for the Dulhasti power project and it will be completed soon.
