PDC to work out cost of Uri-I, Dulhasti: Govt
‘JK allocated coal block in Orissa jointly with NTPC’
Hinting at ensuring return of power projects to J&K, the state government Wednesday asserted it has authorized the Power Development Corporation to ascertain the present cost of Uri-I and Dul Hasti.
Minister for Horticulture, Abdur Rehman Veeri, said this in reply to a query by NC legislator Bashir Ahmed Veeri in Legislative Council. Veeri sought to know about transfer of power projects to the state as per Rangarajan Committee recommendations.
“A Cabinet Sub Committee was constituted to look into various issues associated with the recommendations seeking return of Salal, Uri-I and Dulhasti HEPs to the state apart from those transferred to NHPC vice MoU of July 2007,” he said, adding, “The Jammu and Kashmir State Power Development Corporation was authorized to work out the present cost of these projects on the basis of internationally-accepted norms that would form the basis of further negotiations with Government of India/NHPC.”
He also said the corporation has been allocated coal block (Kudnali Lubri in Odisha) jointly with NTPC with an allocated geological reserve of 130 and 266 million ton respectively.
“Formal allocation letter has not been issued yet. The Ministry of Coal, Government of India has put a condition that allotment letter shall be issued to the joint venture company to be formed by the joint allottees and not to the individual parties where block has been allocated to more than one party,” the minister said, adding, “Pursuant to the decision of its board of directors, the corporation engaged SBICAPS as consultant to carry out the viability options and sensitivity analysis of various options and accordingly advise on the way forward essentially with regard to location of the end use plant.”
“SBICAPS has furnished a report according to which with a coal availability of 3.40 million tonn per annum, the installed capacity works out 660 MW (Super Critical Unit). However, net financial impact by locating the project in J&K vis-a-vis Odisha is estimated to be Rs 700 crore per annum which translates to over Rs 18000 crore over the life time of the project,”
Veeri said, adding, “The government approved the formation of a Joint Venture Company of J&KSPDC and NTPC with an equity stake of 33:67 respectively with such share determined by the share of coal in the coal mine as well as setting up of end use power plants in Odisha.”
He further informed the House that the draft of joint venture agreement has been cleared by the Law Department of J&K. “Formal signing of the joint venture agreement is yet to take place,” the minister said.
Moreover, replying to the query about royalty charges levied to NHPC by state government and earnings made, the minister said: “Water usage charges were imposed in the financial year 2010-11. An amount of Rs 2472.37 crore has been received from the NHPC till now.”
