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Is J&K govt's drumbeating over return of power projects logical?
2/17/2012 11:53:51 PM
Irtiqa Hussain
Jammu, Feb 17: After the much celebrated fiasco over revocation of AFSPA within days, state government has begun drumbeating over a cabinet sub-committee's report which has recommended buying back of three major power projects from NHPC.
Though it is not known what compelled the government to form a sub-committee over an issue which has been debated in detail by ace economist of the country and head of Prime Minister's Economic Advisory Council (EAC) C.Rangarajan in his report, which is now gathering dust both in New Delhi and in the secretive corridors state power ministry.
Constituted by Prime Minister Dr. Manmohan Singh on March 29, 2005, the high-powered Rangarajan task force on development of Jammu and Kashmir submitted its recommendatory report in November 2006 and made specific recommendations for transfer of Dul Hasti hydel power project (390 MW) and Bursar storage scheme (1,020 MW) from NHPC to J&K state. The report lost sheen as new dispensation took over.
Now a cabinet sub -committee of Jammu and Kashmir government has recommended for seeking return of three power projects which include 690-MW Salal, 480-MW Uri (1) and 390-MW Dulhasti. Salal is the oldest of NHPC projects. Ironically, none in the J&K cabinet informed the Chief Minister that C.Rangarajan continues to be head of PM's Economic Advisory Council (EAC) and hence, there was no need of wasting state exchequer on a subject which has been explained numerous times since 2006.
Experts are terming it as time-buying exercise. They say that the government after having failed to get AFSPA revoked in few days is trying to win over commoners by raking up an issue whose fate is known to all. Citing the 'demand and counter demand theory', sources said that union power ministry has repeatedly advised Jammu and Kashmir government not to insist on the return of Dulhasti, Salal, Pakal Dul and Bursar hydroelectric power projects to state from Northern Hydroelectric Power Corporation (NHPC).
"Transfer of the projects to the Jammu and Kashmir government is not in the interest of either NHPC or the central hydel sector since it may lead to similar demand by other states which are also contributing in central pool," said an official associated with NHPC. He stressed that Jammu and Kashmir government has repeatedly requested centre for transfer of the upcoming 1020 MW Bursar Storage Scheme, 390-mw Dulhasti HEP project and even 690 MW Salal HEP to the state sector but the same is not possible since this would result in other states raising similar demands.
Besides, he said that Jammu and Kashmir would not able to compensate NHPC for the cost of the projects. Maintaining that state should come up with some other innovative mechanism for addressing the issue of power deficit, the official said that no transfer of projects is possible in the next 10 to 15 years to the Jammu and Kashmir government.
"If NHPC is compensated in line with the losses assessed by our surveyors, the projects would be transferred but till then, we do not any possibility of projects being returned to Jammu and Kashmir," said another official of NHPC. He maintained that Rs 18,000 crore has been sanctioned for development of power projects under central sector in the state and once these are completed, Jammu and Kashmir would get much cheaper electricity.
However, he repeatedly said that Union power ministry has no reason to discuss proposal for the transfer of hydroelectric projects back to Jammu And Kashmir State. Specifically, talking about the Salal Project and Dul-Hasti which the state government prioritized, the official said that Union ministry of Power has expressed strong reservations on the proposal on the grounds that it would have adverse commercial impact on the existing beneficiaries, said the sources.
Union power ministry has advised the state government to establish a 1000 MW Thermal Power Station either in District Jammu or Kathua to overcome the acute shortage of power supply in winter season. They have further asked the government to accept the alternative of Thermal Power Stations for redressing the base load power requirement of 1500 MW during the winter season.
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