Dis-empowering the people

In a federal or democratic form of governance states are freeto explore.  Financial or technical assistance,if any when needed, is provided by the Centre. The centre levies and collectscertain taxes and duties to carry on its functions. The central governmentenjoys exclusive powers over defence including research & development,heavy industries, telecommunication, currency, coinage/mintage, foreign affair,customs, international import & export , formulation of schemes for  adoption by the states etc. In keeping withthis spirit, the centre has been more often than not taunting the J&K forits continuum deeply deficit budgets dependant largely on centralreplenishments and pressing it to evolve ways & means to cater to its  own needs. However, what is preached inperception finds no practice. The latest instance is the proposal for handingover the state owned Rattle Hydro Electric Power project (Rattle –HEP) toNational Hydro Power Corporation (NHPC)- subsidiary of Government of India .

As per news reports the proposal which is learnt to have thebacking of Prime Minister’s Office and the Union Ministry of Power, the NHPCwill own  51 percent shares while as theState’s Power Development Corporation (SPDC) will have  remaining 41 percent shares. Given theunconcluded past history of eight power projects under the possession of NHPCearning a cumulative  2,339 megawatts ofelectricity equivalent to 1/3rd  itderives from the  rest of the states, thehue & cry over their return to the state, continuous denials of NHPC to doso and the centre’s whipping the state to make its own ends meet this  seems totally unbelievable to write a newhistory. The sources privy to the formation of the Agenda  of Alliance between the BJP-PDP in 2015,return of the two power projects from NHPC was the main bean of  their coalition government whichcollapsed  on 19-6-2018  when BJP withdrew support in a jiffy  to PDP. This project remained entangled incontroversies ab-initio when  a Hyderabadbased company M/S GVK and Infrastructure Limited  won the contract for its execution  in 2010. It had bagged the contract on Built,Own, Operate, and Transfer for a period of 35 years. It was the first hydroelectric project  given forimplementation through tariff based international bidding in which  SPDC was to get 15 percent free power as royalty  besides enjoying first right to purchase for55 percent  power @ Rs1.44 per unit.However, the company abandoned the project mid way in 7/2018 due tocontroversy  over high tariff rates.  It took government about  three years to finally terminate the contractunder Order No.23 of PDD dated 2-2-2017. The causes for delayedtermination  are also un-clarified. Nowthe delayed execution of the project for more than four years had not only costover run but would also result in loss of accrual of energy to the detriment ofpublic exchequer and the welfare of the people.

   

Coming on river Chenab at Drabshala in the district ofKishtwar, the project considered to be the most “viable, attractive and doable” projects in the state , was targeted for completion in 2017 at a cost ofRs.6,000  crore. Subsequently the J&Kgovernment decided to assign the J&K SPDC as an implementation agency tofind other modes of execution. The government readied itself to hand over theproject to SPDC who had  earlier executedBaghliyar  project with less cost &time overrun as compared to NHPC who has abundant needed sources &resources at its disposal. During the gubernatorial rule a joint venture wasproposed   between NHPC and the JKSPDC .The proposal was accorded sanction by the State Administrative  Council  on 5-9-2018. The state had proposed fivemodels of joint venture in 11/2018 by virtue of which  15 percent to 25 percent free power was to begiven to J&K. The ownership propositions proposed between the state and theUnion Power Ministry were also in favour of the state in the ratio of 90:10,75:25, 51:49. Under these patterns free power was proposed at 15 percent, 15percent and 25 percent  respectively.Under each of these models the project had to be returned to  J&K after seven years of its commissioning. However, under the latestproposal when J&K came  underpresidential rule with effect from 20-12-2018 there is not only change in  terms of ownership of shares  it has also been proposed that the projectwill be returned to the state after 25 years of its commissioning.

This will be the second joint venture deal  between PDC and the NHPC  for exploitation of hydro powerresources  after Chenab Valley Power ProjectsLimited (CVPPL) in the state. The  CVPPL,a joint venture among NHPC/PTC and PDC has already been handed over with  three power projects of  Pakal Dul, Kiru & Kawer with a cumulativecapacity of 2,100 MWs. In this venture the NHPC has a  minimum of 51 percent  including 2 percent of PTC  and the remaining 49 percent shares are left for PDC. It may not be sansinterest to recapitulate that NHPC has earlier failed to execute the Pakal Dulproject when  it was allotted on Built,Operate and Transfer basis during 1999-2000 by dint of which  NHPC deserved not to be allotted the same project now. Moreover, as perreports disclosed in the papers NHPC has not kept the terms & conditions of the concluded contracts providingfor first 50 percent free power  to thestate, 50 percent share to the state in the profits earned from the sale ofremaining 50 percent power, employment to the local educated  youth and return of these projects  on the depreciated costs as and when thestate  would demand. In a situation whenthe NHPC denies the availability of copies of such contracts with it and thecentre’s refusal to transfer these projects, there appears to be no hope ofdreaming  of development of J&K andits  achieving dignified status amongstother states. J&K having no requisite financial strength to go solo inexecuting this project cannot be a valid and justifiable position fordispossessing the state of it which could very well be utilized and developedby providing assistance or by allowing to raise domestic funds. In  fact such moveshave worked to the financial fragility of the state.  When the centre commits to the well being,this move is acataleptic and acarpous tantamount to sheer dispossessing &dis-empowering  the state.  To have a win-win position 49 percent freepower in proportion to its shares must be given to J&K  or else the decision annulled as it will havea negative impact on the state economy.

(The author is a former Sr. Audit Officer  working as Consultant in the A.G’s OfficeSrinagar.)

Mohammad jalaluddin2012@gmail.com.

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