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| CERC slaps Rs 317 Cr notice on J&K | | |
HAMAAD SALIF
Jammu, March 15: Despite increase in the power generation in state sector after commissioning of Baglihar project, the Central Electricity Regulatory Commission has imposed heaving costs on Jammu and Kashmir for violating the grid discipline.
The Power Development Department has confirmed that the Central Electricity Regulatory Commission has recently imposed serious penalties on Jammu and Kashmir for overdrawal of power from Northern Grid and violation of Grid discipline. The PDD owes more than Rs.317 crore to Northern Grid and other States on account of past interest on overdrawals of power alone.
Meanwhile, the State Power Development Corporation has said the 450 MW Baglihar Hydro-Electric Project is not eligible for seeking carbon credits under the Kyoto Protocol signed by India, as the project was started much before the Protocol came into place. He said the question of sale of carbon credits from Baglihar Hydro-Electric Project does not arise, adding that no decision on price at which carbon credits could be sold has been taken, as JKSPDC does not own any carbon credits.
A spokesman of the PDC said the perceived loss to State Exchequer is misconceived, adding the Board of JKSPDC has not referred such operational matters to the State Cabinet.
As per Kyoto Protocol on Climate Change, which came into effect in February 2005, there is a time period up to 2012 for seeking carbon credits. “The 450 MW Baglihar Hydro-Electric project is not eligible for carbon credits under the Kyoto Protocol signed by India as the project was started much before the Protocol came into place,” said the spokesman, adding that Baglihar Hydro-Electric Project, which has seen series of objections from Pakistan during its construction and its commissioning last year, is yet to be declared commercially operational.
“The UNFCCC (United Nations Framework Convention for Climate Change), grants carbon credits. The international dimension of Baglihar continues to confront J&K and the Indian Indus Commissioner, on the basis of demand by the Pakistan Indus Commissioner, has pointed towards violations of the Indus Waters Treaty during construction of Baglihar dam structures”, the spokesman said. More than 50 per cent of generated power from Baglihar will be consumed locally by PDD as per the Power Purchase Agreement (PPA) of JKSPDC, he added.
In meetings of the Board of Directors of JKSPDC held in 2007 under the Chairmanship of the then Chief Minister, the Board had considered proposal on carbon credits from KEC International, on no cost to JKSPDC and equal sharing of benefits if accrued, for “substitution of hydro-electric power in the National Grid.” It was considered in the light of the fact that Baglihar Hydro Power Project itself, was not eligible for carbon credits under Kyoto Protocol, he added.
In this case, KEC International wanted to invest its resources and pursue with various bodies such as National CDM Authority for probable award of carbon credits on Northern Grid System. Since Northern Grid is not owned by any single State, JKSPDC stood to gain, the spokesman clarified.
The spokesman said that as per decision of the Board meeting held under the Chairmanship of the then Chief Minister, an agreement was signed towards end of 2007 by MD, JKSPDC with KEC International for exploring substitution of hydro-power from Baglihar on Northern Grid System. This agreement, approved by the Board of JKSPDC, does not provide for any fixed, minimum or maximum price for carbon credits, if ever gained. The price is supposed to be determined by the market, which has seen substantial fall in international carbon credit (CER) prices recently. Ultimate approval to award of carbon credits process is given by UNFCCC. JKSPDC has not received any award of carbon credits, the spokesman added.
The proposed substitution of hydro-power in Northern Grid by J&K can be seen in policy context, the spokesman said, adding the Central Electricity Act, 2003 under the provisions of which Northern Grid is operated, does not apply to J&K. He added that the National Electricity Policy, 2005 is not applicable to J&K.
The National Hydro Policy, which prescribes rehabilitation and resettlement measures, also does not apply to J&K. More than 50 per cent power from Baglihar is to be consumed locally when the project is declared commercial, the spokesman said.
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