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| PHE minister's claim rebutted! NHPC mulling legal course, approaching Union Power Ministry | | Water tax on hydroelectric power projects | | Syed Junaid Hashmi
JAMMU, Mar 24: Bluntly rebutting claims made by Jammu and Kashmir Minister for Public Health and Engineering (PHE) Taj Mohi-ud-Din in media on March 2, National Hydroelectric Power Corporation (NHPC) has decided to take legal course as well as approach Union Power Ministry against enactment of Jammu and Kashmir water resources (Regulations and Management) Act-2010.
The revelations are contrary to what Minister for PHE Taj Mohi-ud-Din claimed on March 2. Speaking to a local Kashmir based newspaper; Taj had claimed "The companies have agreed to pay user charges. Executive Director, NHPC, called me on phone yesterday and agreed in principle that corporation will make the payments. State power Development Corporation too has responded positively,"
He had further said "NHPC will be paying Rs 37 crore for water usage from November 12 to December 31 2010 while as the charges due to JKPDC are Rs 27 crore for the same period. NHPC has to make payment in one installment while as PDC has agreed to make payments in three installments beginning with Rs 10 crore payment tomorrow."
However, during the recently held technical coordination committee (TCC) meeting of Northern Region Power Committee (NRPC) held at Hotel Pacific in Dehradun on February 28, 2011; minutes of which were approved on March 23, 2011, representative of NHPC informed members that enactment of act would have serious impact on tariff of its four operating power stations i.e. Salal, Uri-I, Dulhasti and Sewa- II.
They said that enactment of ac t would result in additional charges being levied on power generation in these projects. According to NHPC's assessment, additional rate due to water usage on Salal would be Rs.1.23 per unit, on Uri-1 would be Rs.0.49 per unit, on Dulhasti Rs.0.58 per unit and on Sewa Rs.0.20 per unit. Representative of Delhi Transco Limited (DTL) pointed out that since impact on tariff was very high, NHPC should explore the possibility of taking legal course in challenging the matter.
When the NHPC informed that state water resources regulatory authority of Jammu and Kashmir has notified water usage charges for generation of electricity at Rs.0.25 per cubic meter vide its notification dated 01-2-2011, representative of Himachal Pradesh State Electricity Board (HPSEB) also pointed out that state of Himachal Pradesh had proposed to levy water cess at Rs 0.02 per unit on generation but the President of India had declined to grant assent to the proposal.
They added that immediately after this, idea of water cess was dropped by HP. He also stated that there is no consumption of water and the Act will impact the public at large. The committee members advised NHPC to take legal course and find out whether J&K can impose such heavy water usage charge.
NHPC representative pointed out that in cost based tariff regime in India; whatever the cost is incurred by generator in the Power Station for generation of electricity, whole cost is to be borne by the beneficiaries. However, NHPC sought support in the matter from all the beneficiary states having stake in NHPC Operating Power Stations in J&K. The technical coordination committee (TCC) decided that NHPC should approach central government or Central Electricity Regulatory Commission (CERC) or otherwise go for legal action. Further, even the chairman NRPC suggested that NHPC might refer the matter to Ministry of Power and take legal recourse, to which NHPC agreed. Copy of the minutes of meeting is available with Early Times. —Early Times Report |
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