Srinagar, June 10: Jammu and Kashmir government no longer requires counter-guarantee from Government of India to rope in foreign investors for setting up hydropower projects in the state, officials revealed today.
 “The state no longer requires it (counter-guarantee). It was needed in the past because power sector was unviable, but now the scenario has changed,” said Principal Secretary, Power, Sudhanshu Pandey, at a press conference here. He along with Managing Director, J&K Power Development Corporation, Basharat Dhar and President India TECH Foundation (ITF), was briefing the media about 2-day International Hydropower Convention commencing tomorrow here. The conference is being organized by (ITF).
 Pandey said the upcoming projects in JK would be allotted through global tendering process. “We have received nine bids (for funding) for New Ganderbal project,” said Pandey.
 He said a Swiss company has shown interest in joint venture between state and NHPC on setting up of three projects – Kiru, Kawar and Pakal Dul - worth 2100 MWs.
 The Union Power ministry’s refusal to give counter-guarantee to the foreign firms who were willing to invest in the power sector in the state, having over 20000 MW potential in the past, has cost JK dearly on economic front. In absence of it (counter-guarantee) JK was forced to handover execution of the projects to the Government of India owned National Hydroelectric Power Corporation (NHPC).
 A counter-guarantee is a sovereign assurance by Government of India that in case of default by J&K the union government would own the liabilities.
 Officials said no to the counter-guarantee resulted in major power projects falling in the lap of NHPC over the years.
 This is for the first time that such a significant statement about no need of the counter guarantee has come from the state Government.
 Officials said in 2000 state had to handover seven projects to the NHPC after Government of India did not provide the guarantee.
 The seven projects were: 240 MW Uri II, 330 MW Kishanganga, 120 MW Sewa II, 1000 MW Bursar, 1020 MW Pakaldul, 44 MW Chitak, 45 MW Nemo-Buzgo.
 Sources said the State had got concurrence from internationally reputed agencies for funding for the projects. The foreign agencies had agreed to provide 85 percent financial assistance to the State government in developing these projects. The State government had got concurrence for developing Kishanganga and Uri II power projects from the companies which had developed Uri I. And for Sewa the concurrence had come from the Seva Power Consortium.
 However the government of India allegedly stalled the projects by refusing to give counter guarantee.
 Dhar said over 41 hydropower projects worth 8298 MW capacity are coming up in J&K in next 10 years, both in the state and the central sector.
 During 12th five year plan, around 41 projects worth 3232 MW capacity projects are targeted for completion, 1231 MWs in state sector and 659 MWs in central sector. Besides over 1300 MW energy would be generated in PPP and micro IPP sector.
 “We are targeting 3000 MW power generation by the end of the 12th five year plan,” Dhar said.
 J&K has hydropower potential of over 20000 MWs out of which around 2400 MW of hydropower has been harnessed so far - 1650 MWs in central sector and 750 MWs in the state sector.
 Dhar said PDC has adopted multi-pronged strategy to go for power generation including setting up projects in independent manner, joint venture, PPP mode and on BOOT basis.
 Regarding execution of 450-MW Baghliar-II, Jammu and Kashmir Bank and Power Trading Corporation (PTC) have agreed for Rs 2000 crore financing for its execution, Dhar said.
 “This is for the first time that the financial institutions have not insisted for mortgaging of our assets in return of funding. It tells about the financial buoyancy and credibility of the Corporation,” Dhar said.
 Dhar said PDC is undergoing a major revamp. “We are focusing on building cadre strength. Today PDC has the manpower to run projects on its own,” Dhar said. “From loss making organization the PDC has a positive balance sheet today. The Baghliar-I is generating an annual profit of Rs 1000 crore,” Dhar said.
 Earlier, Principal Secretary Power Sudhanshu Pandey said a national level hydro-training institute was coming up at Ganderbal in joint venture with NHPC.
 “The execution of the power projects in the state during 12th five year plan will result in generating 36000 jobs,” Pandey said.
 Inder Mohan, President India Tech foundation said as per Central Electricity Authority estimates, J&K has 25000 MW potential. “Only 10 percent of it is being harnessed. The process needs to be speeded up,” Mohan said.
 Regarding the conference Mohan said 40 companies at national and international level, were participating in the event. “We have sent invitation to Pakistan and Nepal too but they are not coming,” he said.

Lastupdate on : Sun, 10 Jun 2012 21:30:00 Makkah time
Lastupdate on : Sun, 10 Jun 2012 18:30:00 GMT
Lastupdate on : Mon, 11 Jun 2012 00:00:00 IST