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Punjab leading purchaser of power produced by NHPC projects in J-K
4/22/2016 10:57:04 PM
Jehangir Rashid

Early Times Report

SRINAGAR, Apr 22: The Northern state of Punjab has emerged as front runner when it comes to buying the power generated by the power projects owned by National Hydro-electric Power Corporation (NHPC) in Jammu & Kashmir.
This revelation has come to the fore in reply to a Right to Information (RTI) application moved by Venkatesh Nayak. Ventakesh who is the Programme Coordinator, Access to Information Programme, Commonwealth Human Rights Initiative (CHRI) had sought information about the various aspects related to functioning of NHPC on the state.
"Punjab is the biggest buyer of the power generated in Jammu & Kashmir followed by Haryana, Delhi, Uttar Pradesh, Rajasthan, Uttarakhand and Himachal Pradesh. Multiple power utilities, some of which are in the private sector in the States of Haryana, Rajasthan and Delhi bought power generated in Jammu & Kashmir from NHPC. Punjab actually bought more power than Jammu & Kashmir during 2001-2015," said NHPC in its reply.
The RTI activist while quoting the reply of Union Minister of Power said that the Task Force on the development of Jammu & Kashmir recommended transfer of certain power projects of NHPC including Dulhasti Hydroelectric Project (HEP) to state government. He said the recommendation was considered by Union Government and not accepted as the power generated from the project has already been allocated to various states including Jammu & Kashmir. Also the transfer of the project is likely to entail considerable financial, non-financial and legal problems.
"The Union Power Minister stated in the Lok Sabha in August 2015, that NHPC was not a loss making public sector undertaking (PSU). Government of India (GOI) is said to have approved a proposal to disinvest 11.36 percent of its shares in the NHPC. In April, 2015 the Minister of State for Finance replying to a question in the Lok Sabha stated that GoI had disinvested Rs. 21.31 billion (Rs. 2,131 crores) worth of its shares in the NHPC," the reply said.
Venkatesh said that the overall picture that emerges from the information supplied under the RTI Act is of Jammu & Kashmir being a power surplus state that lights up homes and powers industries across Northern India while its own people face severe power outages day after day. He said that more than 2/3rds of the hydel power generated in Jammu & Kashmir is consumed outside this state.
"The hydel projects were handed over to NHPC for funding, execution and operation under the MoU. Most importantly, the MoU requires the working out of an acceptable methodology for handing over these projects to Jammu & Kashmir government separately. Presumably, the handing over was to be planned after the completion of 10 years of the execution of the MoU," said RTI applicant.
Venkatesh said that on the face of it, the Union Power Minister's reply in Lok Sabha in May 2015 seems to contradict the terms of the MoU, regarding transfer of power projects after 10 years. He said that there is no mention of 'buyback' of these projects by GoI to Jammu & Kashmir.
"The language of MoU only talks about handing over the projects to Jammu & Kashmir government. However, because of the denial of access to the correspondence between GoI & the Jammu & Kashmir government about this issue it is not possible to clear up this mystery until further disclosures are made," said the RTI applicant.
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