JK Govt says won’t transfer PDC-owned power projects to CVPPPL
A senior cabinet minister Tuesday said no power projects owned by the J&K Power Development Corporation will be transferred to the Chenab Valley Power Projects Private Limited.
The minister’s remarks come amid a row over the government’s proposal to make the CVPPPL a “holding company” for all power projects in the State.
In Its Agenda of Alliance—a guiding framework for governance in J&K—Peoples Democratic Party and BhartiyaJanta Party have agreed to restructure the CVPPPL, a joint venture between National Hydroelectric Power Corporation, PDC and PTC, as holding company for all power projects in the State.
“To address real source of J&K’s fiscal problem and pave way for making J&K a fiscally autonomous State, the State Government will work with the Union Government to restructure and strengthen Chenab Valley Power Projects Private Limited as holding company for all power projects in the State,” reads the Agenda of Alliance.
Talking to us, former Chief Minister Omar Abdullah said the proposal was “flawed” and would “deal a blow to the existence of the PDC.”
The PDC, he said, was cent-percent state-owned company while the State has only 49 percent shares in the CVPPPL.
“The moment you handover the PDC owned projects to the Chenab Valley Company you are converting 100 percent state owned projects into only 49 percent state owned projects. Why would you do that? This is the fundamental problem with the proposal,” said Omar, who held power portfolio during his Government in J&K.
Minister for Finance HaseebDrabu, an architect of the Agenda of Alliance, said none of the PDC-owned projects would be transferred to the CVPPPL.
“The PDC will continue to own and operate its existing and upcoming projects in the State,” he said.
The CVPPPL was set up as a joint venture company between NHPC, JKSPDC and PTC Limited for execution of three hydroelectric projects—PakalDul, Kiru and Kawar—with aggregate capacity of 2220-MW, on Chenab river basin with equity participation of 49%, 49% and 2% by NHPC, PDC and PTC respectively.
Establishment of the CVPPPL was cleared by Raj Bhawan in 2008 during Governor’s rule in the State following a meeting between authorities in the Government of India and the State Government.
“This (making CVPPPL a holding company) is part of their Agenda of Alliance. If there is any move in this direction the PDC will get reduced to a subsidiary of the CVPPPL. There will be no PDC,” Omar said earlier. “Baglihar which is today 100 percent state owned project will be only 49 percent state owned project if the PDC projects are transferred to the CVPPPL. National Conference will oppose the proposal tooth and nail?”
No other minister from PDP or BJP including the Power Minister Nirmal Singh commented on why the proposal of making the CVPPPL as the holding company for all projects was made part of the Agenda of the Alliance.
“There is nothing like it (making Chenab Valley Company as the holding company) in the Agenda of Alliance,” Singh had earlier told Greater Kashmir.
Drabu however said the CVPPPL would be the “holding company for only six projects which were to be set up by NHPC independently.”
Chairman CVPPPL MY Khan had earlier told Greater Kashmir that the company had succeeded in getting approval of Union Power Ministry for execution of Dulhasti-II and 2nd stage of Uri-I hydropower projects by the company.
“It (CVPPPL) will be the holding company for six projects only. The State Power Development Corporation will continue to own and operate its existing and upcoming hydropower projects in the State,” said Drabu.
During his visit to Kashmir in June this year, Union Power Minister, PiyushGoyal too extended cooperation for making CVPPPL as holding company even as he out-rightly rejected other proposals agreed in the Agenda of Alliance including transfer of two power projects from NHPC to state, increasing power royalty from NHPC owned projects to 25 percent to J&K and providing a share from profits of the NHPC to the State.
The Chenab Valley Company was set up to execute only three power projects – PakalDul, Kiru and Kawar.
The proposal for making CVPPPL the holding company has evoked lot of criticism as experts apprehended it would give a “deadly blow to the existence of the PDC.”
Former Executive Director, PDC, Zahoor Ahmad Chatt, termed the proposal as a “ploy to economically destroy J&K.”
“This will ensure complete economic destruction of our State as nothing will be left with us,” he wrote in his column in Greater Kashmir. “So far, projects of 5519- MW capacity have been surrendered to NHPC/CVPPPL but the buck has not stopped here. Now PDP and BJP have decided to hand over all power projects to NHPC under the garb of CVPPL. It means that all projects in the State (operational / under construction / proposed), whether owned by State, Centre or CVPPPL shall now be transferred to and owned by CVPPPL for their construction, operation and sale of power.”
The PDC was established as Private limited company in 1995 for harnessing hydropower potential in J&K and for taking over, executing, completing, operating and maintaining all power stations and projects of the State.
At present the PDC owns 22 power projects in the State which have a cumulative generation capacity of 760-MW while as NHPC is presently generating 2009 MW in J&K—highest in any state. The projects owned by the Corporation in J&K include Salal, Uri-I, Uri-II, Dulhasti, Sewa-II, NimooBazgo and Chutak.
