Jammu, Apr 16: The state government is contemplating to amend J&K Water Resources Act 2010–through an ordinance-to pave the way for using the money collected as water usage charges for building and buying back of hydro electric Projects.
 Sources told Greater Kashmir that the government would bring an ordinance, the draft of which is likely to be approved at the next cabinet meeting.
 They said the ordinance would pave the way for using the funds generated from water usage charges for buying back of hydro electric projects and construction of new ones.
  “As per J&K Water Resources Act, the funds generated from water usage charges are treated as non-plan funds which cannot be used for capital investment. The Act debars the state government to use the funds to buy back power projects from NHPC or construct new power projects in the state” sources said.
 They added that the funds generated on account of water usage charges are expected to swell to around Rs 1000 crore by next year. “This money cannot be technically used for the capital expenditure. If the state government will put this money in the plan the Government of India will cut down the funds given to it for capital investment. To avoid such a situation the state government is mulling to amend Water Resources Act” sources said.
 It was reliably learnt the matter was likely to come up for discussion and approval in the next cabinet meeting as Public Health and Engineering Department has prepared a detailed proposal in this regard. “A clause will be incorporated in the Act by bringing an ordinance. A clause will be inserted in the Principal Act, according to which the funds generated from the water usage charges, will only be used for the creation of new hydel projects or buying back those operated by NHPC ” sources said.
 They said the amendment in the Act was also important in the light of the hurdles being created by National Hydel Project Corporation (NHPC), which was not in a mood to return the power projects to state government.
  “The state government is completing all formalities which include the arrangement of funds to buy back Uri and Salal power projects. For the purpose, the funds being generated from water usage charges would be used by state government” sources said.
 They disclosed that to arrange remaining funds the government is contemplating to raise loans from JK Bank. “After the amendment in the Act, the J&K bank will easily give money to state government to buy back power projects as it will have  guaranteed paybacks under the water usage charges ” sources said.
 PHE, Irrigation and Flood Control Minister Taj Mohi-ud-din, while confirming the government move, said that an amendment would be incorporated in the Water Resources Act. “The amendment in the Act will also tie our hands and the funds cannot be used for any other purpose except for power generation” Taj said.
 He added the proposal would be tabled before the state cabinet, in its next meeting, so as to enable the department to proceed with the matter.

Lastupdate on : Mon, 16 Apr 2012 21:30:00 Makkah time
Lastupdate on : Mon, 16 Apr 2012 18:30:00 GMT
Lastupdate on : Tue, 17 Apr 2012 00:00:00 IST