India plans 3 power projects

New Delhi: India is setting up a company called the Chenab Valley Power Projects (CVPP) to construct three power plants on the Chenab River in Indian-held Jammu and Kashmir. All three projects — Kiru (600 MW), Pakal Dul (1,000 MW) and Karwa (520 MW) — are to be constructed in the Doda district.

Pakal Dul is to be a reservoir-based scheme on the Marusudar River, the main right bank tributary of the Chenab River, in the Kishtwar tehsil of Doda district. The project envisages the construction of a 167 metre-high concrete face rockfill dam at Drangdhuran village, and an underground powerhouse.

The New Delhi-owned National Hydro-Electric Corporation (NHPC) will undertake the projects as joint ventures with the Indian-held Jammu and Kashmir government. The NHPC will have 51 percent stake in the projects, which is being seen as a boost for the power-starved state. For earlier projects, such as Salal, Dul Husti and Uri, the NHPC provided just 12.5 percent power as royalty to the state, while the bulk of power was transferred to supply power to the Rajasthan, Punjab Haryana and Delhi states.

After extensive negotiations between the NHPC and state government representatives Financial Adviser Dr Haseeb Drabu and Commissioner/Secretary Power Sandeep Nayak, in presence of Union Minister of State for Power Jairam Ramesh, it was decided that the CVPP would be set up.

Sources in the Union Power Ministry said that it was expected that a memorandum of understanding (MoU) would be signed between the parties on April 26, in presence of Prime Minister Manmohan Singh.

According to the MoU, the NHPC will own 51 percent stake in the company. The remaining 49 percent will go to the Indian-held Jammu and Kashmir government-owned Power Development Corporation (JKPDC).

Aside from a 12.5 percent share as royalty, the state will get 61.5 percent of the power generated by these power plants, which are expected to start generating power in the next four years.

The three projects will have a cumulative installed capacity of around 2,120 MW, and will require an investment of Rs 12,720 crore. Both sides will shell out 30 percent equity, while the remaining amount is to be raised from loans.

According to the MoU, the NHPC will lose its equity if it fails to execute the projects within the prescribed deadlines.

Union Minister Jairam Ramesh has directed NHPC officials to start work on the projects simultaneously within 60 days of the signing of the MoU.

It has also been decided that a 12-member board will be set up, with six members from each side. According to the agreement, the JKPDC will nominate the chairman, while the NHPC will appoint the managing director. The state government has committed to appoint a non-political person with technical and professional integrity as chairman. It has also been decided that the company will employ all its human resources from the state, to address unemployment problems.

Thanks to the three power projects in Jammu and Kashmir, the NHPC earned profit of Rs 1,005 crore and its sales recorded the highest-ever figure of Rs 2,300 crore in the last fiscal year. The Corporation has earned Rs 300 crore from its three projects, Salal, Uri-I, and Dul Hasti, which were set up at an investment of Rs 9,454 crore.