NHPC seeks to adjust water cess against JK’s power purchase liabilities
With the power purchase liabilities piling up against J&K, the National Hydroelectric Power Corporation (NHPC) is eyeing to adjust the outstanding water usage charges against the State’s liability.
According to official documents, the Corporation came up with the demand during the 30th meeting of the commercial sub-committee of the Northern Regional Power Committee (NRPC) held in the neighbouring Himachal Pradesh on September 23, 2015.
The State purchases electricity from several central power suppliers including NHPC that has seven hydropower projects operational in the State.
Post 2009, the power generating companies including NHPC are paying water usage charges to the JK government for exploiting water potential of the State.
According to minutes of the meeting circulated on January 7, 2016, the NHPC -represented by Chief Engineer Parag Saxena- claimed that that “PDD (J&K) was the main defaulter in payment of energy charges” to the Corporation.
On this, a PDD official informed that the department has taken up the matter with the State government and was “expecting resolution of the issue very soon”.
The PDD was represented by Superintending Engineer, Commercial and Survey Wing, S.K. Kaul in the meeting.
According to the document, the Corporation representative claimed that “NHPC was paying water cess of around Rs 450-500 crore per year to J&K government for generate electricity but on the other hand it was not getting electricity charges from PDD, J&K.”
He further said that PDD may provide them consent for adjusting the water cess against the outstanding dues.
The panel, however, opined that this “forum is not competent to authorize NHPC for cross adjustment of water cess against energy charges”.
“NHPC was advised to decide their own course of action,” the minutes of the meeting reveal.
When contacted, Principal Secretary PDD, Dheeraj Gupta said he is not aware of the issue.
“I have not seen it (the document),” he said on being asked that minutes of the meeting of NRPC’s commercial sub-committee mention that NHPC came up with the demand.
Curiously, the Government of India recently came up with a plan for restructuring the debt of State utilities.
Under the program, J&K has been given go-ahead to raise Rs 2140 crore from market to restructure the outstanding dues of Central Power Suppliers (CPSUs).