Srinagar, Mar 2: Government of India-owned National Hydroelectric Power Corporation (NHPC) and other energy generating companies have agreed to pay the user charges for harnessing the Jammu and Kashmir’s water resources for power generation.
 “The companies have agreed to pay the user charges. The Executive Director, NHPC, called me on phone yesterday and agreed in principle that the corporation will make the payments. The State Power Development Corporation too has responded positively,” Minister for PHE, Taj Mohi-ud-Din told Greater Kashmir on Wednesday.
 The state legislature had last summer passed a legislation named, Jammu and Kashmir Water Resources (Regulation and Management Act) - to impose water usage charges on power generation companies in Jammu and Kashmir. It was enforced on November 11 last year and earlier this month the state’s PHE department had issued bills to the power generating companies – NHPC and J&KPDC.
 “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,” Taj said. “The NHPC has to make payment in one instalment while as PDC has agreed to make payments in three instalments beginning with Rs 10 crore payment tomorrow,” the Minister said.
 The billing had been worked out as per the current discharge in the rivers which usually falls during winters but is expected to rise in summers.
 The government has already asked the companies having several power projects in JK to complete all formalities including license for water usage from PHE department and registering themselves with the State Water Resources Regulatory Authority (SWRRA), to be constituted under the act.
 Government is hopeful of realizing Rs 913 crores as water usage charges for this year which comes out to be 25 percent of the state’s total resource base.
 “The department will be charging 25 paisa per cubic meter for first two years after which the rates will be reviewed,” Taj said. He said as per the Act, the water usage charges would be imposed on the power generating companies from the date the new law came into force and no decision has been taken on the arrears.
 He said once projects like Kishanganga and Uri-II are completed, the revenue generation on account of water usage by power projects is expected to cross Rs 1500 crore.
 Under the Act the government is setting up State Water Resources Regulatory Authority which would be vested with the powers to decide on water usage tariff.

Lastupdate on : Wed, 2 Mar 2011 21:30:00 Makkah time
Lastupdate on : Wed, 2 Mar 2011 18:30:00 GMT
Lastupdate on : Thu, 3 Mar 2011 00:00:00 IST