JK’s PDC powerless, courtesy official apathy

No Board of Directors in place; Hiring consultancy for quantifying IWT losses, award of projects, other key proposals await clearance; BoD last met in June 2014

The functioning of State Power Development Corporation has taken a hit owing to delay by the PDP-BJP coalition government in reconstituting its highest decision making body—the Board of Directors (BoD).

While the BoD met only once last year, delay in its reconstitution by the new Government—which is now three months old—is adding to “problems” confronting the state’s only energy generation company, sources said. The BoD is final authority to Okay policy decisions regarding implementation of new projects, power generation, issues related to operation and maintenance of existing projects and also day-today issues related to administration.

Headed by Chief Minister, the BoD comprises of nine directors including Power Minister, Principal Secretary to Chief Minister, Commissioner/Secretaries of Power, Planning and Finance Departments and Managing Director and Executive Director of PDC and State’s Economic Advisor.

Sources told that last BoD meeting was held on June 11, 2014 when Omar Abdullah headed the body as former Chief Minister. That was the only meeting (17th) held by the BoD last year though norms say the body has to meet quarterly.

Sources said a number of proposals including hiring an international consultancy for quantifying losses suffered by J&K on account of Indus Water Treaty (IWT), awarding contract of 92-MW New Ganderbal hydropower project, are awaiting clearance by the BoD.

The Corporation has shortlisted Danish Hydraulic Institute, a Denmark-based company for getting IWT losses quantified. It had in 2013 invited fresh bids after M/s Halcrow Consulting India Ltd, a part of M/s Halcrow Group of UK, which had won the contract retracted citing bid validity for the project had expired.

“The delay can again result in expiry of validity of the bid related to quantification of IWT losses and also any further loss of time in awarding New Ganderbal can lead to its cost escalation,” sources said. “In absence of the Board there is no forward movement on re-starting work on 850-MW Rattle Power project which is mired in controversy. Regularization of daily wagers and a number of issues related to day-to-day functioning of the Corporation are also pending for many months.”

A senior official said alliance partners PDP and BJP were “not on same page” over the issue of reconstitution of the BoD. They said BJP was pushing for elevation of its party leader and Power Minister Nirmal Singh as Chairman of the BoD instead of Chief Minister.

Traditionally, the position has been held by Chief Minister in the past while former Power Ministers like Congress’ NawangRigzinZora and Babu Singh held position of vice-chairmen in the BoD.

The PDC, which was incorporated as private limited company and entrusted with task of harnessing hydropower potential in J&K, owns 21 hydropower projects including 450-MW Baglihar-I. The Corporation is at present generating a total of 760-MW energy and is scheduled to commission phase 2nd of Baglihar, which is also 450-MW, by end of this year.

“Unfortunately the Corporation has never been priority of successive governments despite the fact it has potential to contribute in a big way to J&K’s economy if given autonomy,” the sources said. “The delay in reconstitution of the Board again proves Government’s non-serious approach towards PDC.”

Sources said delay in reconstitution of the BoD was also impacting functioning of Chenab Valley Power Projects Private Limited (CVPPPL), a joint venture company between PDC, National Hydroelectric Power Corporation and Power Trading Corporation, which is setting up three hydropower projects on Chenab basin in Jammu. “Owing to defunct Board of Directors of PDC, the CVPPPL’s Board of Directors is also non-functional as PDC has not been able to nominate two members for the CVPPPL Board,” sources said

Principal Secretary Power Sandeep Kumar Nayak said the Government would “soon” re-constitute the Board of Directors. “The issue is still pending but we hope it (BoD) will be re-constituted in coming days,” he said.