Jammu, May 20: The 450-mega watt Stage-II Baghliar hydro power project has hit a roadblock following eruption of grave disagreement over some clauses governing work conditions and administrative issues in the 2002 agreement signed between J&K Power Development Corporation (JKPDC), German giant Siemens and JP Associates.

 Sources said that all the three parties want to have a fresh look at the agreement signed nine years ago, particularly in the backdrop of clearance of the project by the Central Electricity Authority (CEA) last December.

 Officials said that differences are mainly on the work conditions and administrative issues with the executing agencies pleading that the old contract has become obsolete and it was difficult for the companies to take up the work on the terms and conditions set in the agreement.

 “Agreement was signed in 2002 and at the moment all the parties want to revise the same. A high level committee was constituted by the government recently to take into account the concerns of all the stake holders, but so far it has also not been able to resolve the issue,” said an official source. 

 After much lobbying and facing hurdles from Pakistan and Environmental Ministry, CEA had given its approval to the project on December 29 last year and was likely to be listed as mega project which will help the state to avail tax exemption on the machinery.

 As per the agreement, JP Associates had to look after civil and hydro-mechanical works while Siemens will be handling the electro-mechanical part.
 With the completion of the stage-II, the generation capacity of the first ever state-owned mega venture, Baghliar, would increase to 900 mega watts against present capacity of 450 mega watts.

Lastupdate on : Fri, 20 May 2011 21:30:00 Makkah time
Lastupdate on : Fri, 20 May 2011 18:30:00 GMT
Lastupdate on : Sat, 21 May 2011 00:00:00 IST