Power Projects – A Treasure Lost
Out of total power generated by projects under NHPC, Jammu Kashmir only gets 13 percent free power – Mohammad Muzaffar Thakur
Energy is an essential pre-requisite for sustainable economic growth and development. The energy demand is increasing several folds with the change in life style, population explosion, modernisation and industrialisation.
Prosperity which economic development brings, in turn stimulates demand for more and better quality and sustainable energy services. Advance industrialised societies use more energy per unit of economic output and for more energy per capita than poorer societies, especially those remaining in a pre industrial state.
Jammu Kashmir has vast hydro power potential of which only major portion is yet to be harnessed.
Proactive Civil Society in Kashmir comprising trade groups, doctors, academicians, activists and media personnel kept digging deeper into the issue and brought to light the unequal distribution of energy by NHPC between Jammu Kashmir Government and other Indian States.
The Civil Society demanded return of power projects of Jammu Kashmir which are run by the NHPC, as the State is capable of running these projects of their own. Unfortunately, Jammu Kashmir is suffering for want of power and the State is importing power from northern grid of India and from other states of India to meet its power requirement especially in winter when demand increases and generation reduces and the NHPC is responsible for exploitation of Kashmir’s only major resources, and supplying power to Punjab, Haryana, UP, Uttarakhand, Delhi, Rajasthan and Chandigarh.
Out of total power generated by the projects under NHPC, Jammu Kashmir only gets 13 percent free power.
Out of total power generation capacity of 20,000 MWs in Jammu Kashmir only 2648.20 has been harnessed from hydro power projects, thermal plants and DG Sets under central and state sector. The state has 19 hydroelectric projects under State sector and eight projects are under NHPC.
Chenab Valley Power Projects(p) Ltd is a joint venture of NHPC, (A Government of India enterprise, JKSPDC, a Government of Jammu and Kashmir undertaking, and PTC India Ltd. Chenab Valley Power Projects (P) Ltd has been incorporated on 13.6.2011 as a joint venture company of NHPC, JKSPDC, and PTC (India) Ltd for execution of three hydroelectric projects namely Pakal Dul, (1000MWs) Kiru (600MWs) and Kwar, (520MWs) with aggregate generating capacity of 2120 MWs at Chenani River Basin in district Kishtwar of Jammu Kashmir with equity participation of 49 percent, 49 percent and 2 percent by NHPC, JKSPDC, and PTC respectively.
The company shall execute these projects on Build, Own, Operate and Maintain (BOOM) basis.
Projects under progress under central sector include Kishenganga with installed capacity of 330 MWs, Nimo Bazgo 45 MWs in Leh, and Chutak 44 MWs which developed a snag and closed right now. Uri II 240 MWs and Burser 1020 MWs.
So far NHPC has commissioned four Projects in Jammu Kashmir with combined installed capacity of 1680 MWs in the state and four other projects with combined installed capacity of 659 MWs are under construction.
Government of Jammu Kashmir is also pursuing the construction of 1020 MW Burser hydroelectric project on priority basis while work on three projects in the state is to be implemented under joint venture route. Various power projects with generation capacity of about 4000 MWs have been conceived by JKSPDC and are at various stages of execution at present.
In addition to this various projects are under way to utilise the power potential of Jammu Kashmir. The projects include Baglihar II (Ramban on River Chenab which has power generation capacity of 450 MWs). The Project is being executed in State sector. Sawalakote I and II projects are also undertaken under State sector which has power generation capacity of 1200 MWs. With the power generation capacity of 50 MWs the lower Kalnai Power Project has been undertaken under State sector by JKSPDC. Rattle Project having capacity of 690 MWs is being undertaken by the independent power Producer (IPP) on Build, Own, Operate and Transfer basis (B00T) on river Chenab in Kishtwar).
According to the balance sheet of NHPC for the year 2010-2011, the company reported a net sale of Rs 4060 crore with a profit of Rs 2166.67 crore.
In this period power projects operational in Jammu Kashmir have contributed around half of the sales of NHPC.
Government of Jammu Kashmir expressed its willingness to buy the projects under NHPC by paying the construction cost, but the NHPC maintain that the company owns the projects which is not only surprising but contrary to the legal position and other documented facts also.
The Government of Jammu Kashmir and Civil Society are also stressing upon the Government of India to implement the recommendation of Rangarajan Committee set up to look into the financial relations between New Delhi and different states of India.
Four out of NHPC’s 15 operational power projects are in Kashmir, their cumulative capacity of 1680 MWs nearly half of NHPCs total electricity generation.
A cabinet sub-committee was constituted to look into the case. According to the report of cabinet sub- committee the file was “missing”. However, the committee could lay hands on some documents/memo to cabinet dated October 28, 1980 pertaining to Dul Hasti Power Project.
It mentioned that the responsibility of the execution and management of the project was of Government of Jammu Kashmir during construction. Once in operation, half of the total generation from the project would go to Jammu Kashmir at generation cost and the arrangement will be reviewed every five years. The Government of Jammu Kashmir was at liberty to sell part of its share, as the overall profits of the project were to be shared equally (50; 50) by the Government of Jammu Kashmir and Government of India.
Letters written by Sheikh Mohammad Abdullah to Union energy Minister on October 16, 1981 indicate how NHPC kept ignoring letters of Government of Jammu Kashmir. The documents also show New Delhi’s reluctance to provide Jammu Kashmir its share from Salal Project.
The records also show that Government of India had agreed in 1969 that Jammu Kashmir would be provided 70 MWs from Salal with an installed capacity of 230 MWs. When the generation capacity of Salal turned out to be 345 MWs, the Government of Jammu Kashmir demanded the pro-rata increase to 120 MWs. But the energy was never provided.
This reminds us the attitude of a colonial rule towards Jammu Kashmir.
Government of Jammu Kashmir has been getting 12.5 percent of energy generated by the project. According to cabinet sub-committee report, NHPC has generated 67411 million units of energy between 1987 and Nov 2011.
Jammu Kashmir was supposed to get 12 percent (free power as royalty plus 35 percent billed at bus bar rates) that makes around 31686 million units.
However, it has got only 22883 million. The quantum of energy that did not accrue to Jammu Kashmir, costs Rs 589.26 crores and Jammu Kashmir had to procure the same at much higher rates that cost it Rs 2350 crore, a clear loss of more than Rs 1600 crores.
Author can be mailed at muzafer.hsn@gmail.com
Eight Projects under NHPC
Name of the Project Installed capacity Year of completion
Salal-I 345 MW capacity (Reasi) 1987
Salal-II 345 MW capacity (Reasi) 1996
Uri-I 480 MW capacity (Baramulla) 1997
Dul Hasti 390 MWs (Kishtwar) 2007
Sewa-II 120 MW (Basohli) 2010 (29th Sept)
Chutak 44 MW (Kargil) 2012-13
Uri-II 240 MW (Baramulla) 2013
Nimo Bazgo 45 MW Leh 2013
