Nimoo-Bazgoo, Chutak designed to produce 89-MW, generate just 9-MW

The 89-MW capacity two hydropower projects— Chutak and Nimoo Bazgo— set up under the central sector in Ladakh are performing far below the targets owing to non-availability of infrastructure.

Owned by National Hydroelectric Power Corporation, the 45-MW Nimoo Bazgo project in Kargil and 44-MW project in Leh were inaugurated by Prime Minister Narendra Modi during his maiden visit to Ladakh last year.

“The two power projects generate less than 10-MW energy during winter,” an official said.  “While Chutak generates just 3-MW, Nimoo Bazgo’s remains at 6-MW.”

During summers, owing to non-availability of the infrastructure, the generation hovers around 20-25 MW, the official said. “Since there is no system in place to evacuate the energy, the generation gets curtailed. Also, as the consumption/demand is far less in the region it impacts generation in the projects as it is directly linked to the demand,” the official said.

He said since the projects were owned by the NHPC, the evacuation line from the projects was being set up by the Corporation, for State Power Development Department.

“The evacuation line is being set up under a scheme by Rural Electrification Corporation of India wherein the funding comes in form of loan to the State. The worry is that if the Corporation fails to construct the line, the State will have to pay for the deemed energy which means the energy generated by a project but not used,” the official said.

The issue of less generation from two projects and problems faced in evacuation came up for discussion recently a meeting chaired by Union Power Minister Piyush Goyal here earlier this month, to review the performance in the State power sector.

Sources said the funds which were allocated for construction of 375-km Srinagar-Kargil-Leh transmission line under the Prime Ministers Reconstruction Program (PMRP) for J&K, were diverted for setting up of the two projects.

During his visit to J&K, former Prime Minister Manmohan Singh announced the Rs 28000 crore PMRP for the State which was later revised to Rs 33000 crore. However, around Rs 20000 crore under the PMRP were allocated for setting up of hydropower projects owned by NHPC, a Government of India subsidiary.

A run-of-the-river scheme, Nimoo Bazgo project has been set up on Indus River in Leh. The approval for the project was accorded in August 2006 by New Delhi at the estimated cost of Rs 611 crore. However, on account of escalation, statutory charges and higher cost of award, the project cost was later revised to Rs 985 crore, sources said.

The Chutak project is also a run-of-the-river scheme on Suru River and its approval was also accorded in August 2006 at an estimated cost of Rs 621 crore. However the construction cost was later revised to Rs 894 crores on account of escalation and statutory charges.

“The escalation in the cost of the two projects led to the diversion of the funds meant for the transmission line,” sources said.

Former Prime Minister Atal Behari Vajpayee had announced Srinagar-Leh transmission line in August 2003 during his three-day visit to the state.

The initial cost of the project was worked out at Rs 300 crore which escalated during the subsequent years due to delay in its start. The revised cost of the project is now over Rs 1700 crore.

Last year Prime Minister Modi laid foundation stone of the project which would be executed by Power Grid Corporation of India. The system would provide connectivity of Leh and Kargil area in Ladakh with Northern Region Grid at 220kV level for meeting demands of the Ladakh region.

The transmission system includes 375 km transmission line at 220kV voltage level from Alistong (Srinagar) to Leh via Kargil with four 220/33kV sub-stations at Drass, Kargil, Leh and Khalsti. This transmission system would be able to facilitate availability of power of about 100-150 MW in Ladakh region.

During the meeting headed by the Union Power Minister here last week, the state officials pleaded that New Delhi should fully fund construction of the transmission line.

“It was fully funded scheme under the PMRP,” the Minister was told.

Sources said when the transmission line was sanctioned under PMRP, the State government had argued that it would help to supply electricity to the cold desert. However, sources said Government of India instead decided to use the funding for construction of the two power projects for “lighting houses in Ladakh”.

The transmission line is now being funded by the Government of India on the pattern of 95:5 ratio.