NHPC, JKPDC Joint Venture Takes Shape14 June 2011
Srinagar: Decks have been cleared for execution of three hydro power projects of 2120 MW capacity in Jammu and Kashmir in joint venture between State Power Development Corporation (JKSPDC), National Hydroelectric Power Corporation (NHPC) and the Power Trading Corporation of India (PTCI). The Registrar of Companies, government of India, has formally okayed setting up of joint venture company - Chenab Valley Power Projects Pvt Ltd (CVPPPL) - under which three mega power projects - Pakal Dul (1000 MW), Kiru (600 MW) and Kawar (520 MW) - are to be executed. The certificate of incorporation was issued on June 13, 2011. “We have received the certificate of incorporation for the new company. Work on the projects would be taken up soon,” chairman, Board of Directors, CVPPPL, MY Khan told Greater Kashmir. The incorporation of the CVPPPL follows the promoters’ agreement among JKSPDC, NHPC and PTC India Ltd on December 31, 2010. Scheduled for completion in next six years, the projects are likely to cost more than Rs 15000 crore. “We will be taking up execution of Pakal Dul first followed by Kiru and Kawar for which the global tenders will be invited,” said Khan. The paid-up equity share capital in the company shall be contributed by NHPC, JKSPDC Ltd and PTC in the ratio of 49:49:2 respectively. “Of total power generated from the projects the share of state shall be 62 percent,” Khan said. The state would have an assured share of about 1179 MWs of power with the first right of refusal for the remaining 941 MWs from the entire project, said a PDC official, adding it would to a greater extent address the power requirements of J&K. Against the requirement of more than 1500 MWs the local power generation is around 750 MWs including 450 MWs produced from Baghliar-I. State regularly imports more than 750 MWs of energy from northern grid to meet its local energy requirements. The import has been constantly draining the meagre finances of the state. Last year JKs Power purchase bill had whopped up to Rs 2,500 crore and is expected to swell up to Rs 3000 for this financial year. In May 2008, the state government had taken a decision in New Delhi in consultation with the Union Power Ministry to float the Chenab Valley Power Development Corporation (CVPDC), now rechristened as CVPPPL, to exploit Chenab basin water resources for power generation. The decision was taken at a meeting attended by the then Union Minister of State for Power, Jairam Ramesh, the then J&K Power Minister, Babu Singh, the then Secretary PDD, Sandeep Naik, and the then Resident Commissioner New Delhi, S V Bhave. On October 10, 2008, MoU was signed between the NHPC, JKSPDC and PTC for setting up the joint venture company under the Companies Act 1956 to construct, commission and operate the power projects after obtaining approval from the Government of India and the Jammu and Kashmir Government. On June 13, 2009, the state government ratified the MoU without any amendment. The approval was accorded under cabinet decision No. 168. As per the MoU the JKSPDC would have a share of not more than 49 percent while the NHPC would have share of not less than 49 per cent in the new company. Several trade bodies, civil society groups and political parties had opposed this MoU clause. They argued that “not more than 49 percent” would mean the investment by the state-owned JKSPDC would be restricted to anything between zero and 49 per cent even as it would always find itself handicapped for want of money. Pakal Dul project is to be constructed on river Marusudar in Warwan-Marwah area of district Kishtwar and is likely to cost Rs 5,511.83 crore. Kiru project is planned as a run-of-the-river scheme over Chenab river at a location 25 km upstream of Dulhasti in Kishtwar district at a cost of Rs 2381.92 crore. Kawar project is planned as another run-of-the-river scheme over Chenab river near village Padyarna in Kishtwar district at a cost of Rs 3386.11 crore.