Government to create separate fund for new power projects
Amends J&K Water Resources Act To Buy Back Salal,Uri-I From NHPC
Srinagar, Aug 24: The State Government has set into motion the process for utilizing funds generated under Water Resources Act for setting up new hydropower projects in Jammu and Kashmir.
The government has issued an ordinance amending the J&K Water Resources (Regulation and Management) Act, 2010 for creating a separate “fund” under a proper account head for developing new power projects from water usage charges levied against different energy generating Companies including NHPC for harnessing state’s water resources.
The ordinance also allows the state to buy back already established hydropower projects from National Hydroelectric Power Corporation in J&K.
An official in the Law Department said the ordinance amending the section 185 of the Act was cleared by the Raj Bhavan. He said it was issued on 14th of this month.
Minister for Irrigation Taj Mohi-ud-Din whose Department came up with the law in 2010, said the ordinance was necessitated because the water usage charges fall under non-plan component.
“Government is conscious about the economic position of the state,” Taj said. “This (law) is first direction towards state’s economic stabilization.”
Under the Water Resources Act the state generates around Rs 900 crore to Rs 1000 crore annually by levying water usage charges against the companies harnessing state’s water resources for power generation. “In five years we will be able to pool around Rs 20000 crore by using equity to raise finances,” Taj said.
The amendment empowers Finance Department to constitute a “fund” under a proper account number in the Jammu and Kashmir Bank in which amount realized as water usage charges shall be deposited.
The fund shall be operated upon by the Finance Secretary exclusively for establishing hydel projects, power projects and Multipurpose Hydroelectric Projects and buying back power projects already established in the State, said an official handout.
Taj said the money would also be used for buying back power projects from NHPC already in operation like 480-MW Uri-I and 345-MW Salal.
The Cabinet Sub-Committee (CSC), constituted by the state government to review the pact with NHPC, recommended in its report submitted to government earlier this year buying back Salal and Uri-I at depreciated cost of Rs 2566 crores from NHPC.
Lastupdate on : Fri, 24 Aug 2012 21:30:00 Makkah time
Lastupdate on : Fri, 24 Aug 2012 18:30:00 GMT
Lastupdate on : Sat, 25 Aug 2012 00:00:00 IST
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