Mohinder Verma
JAMMU, Dec 25: In a testimony of worst ever bureaucratic inertia, the power starved Jammu and Kashmir has failed to initiate basic steps towards obtaining benefit of the coal block allocated to the State by the Union Coal Ministry two and half years back. In view of the soft-paddling on the otherwise important project, nobody knows when the State would be able to obtain its benefit.
The coal block in Kundanli-Luburi area of Odisha was allocated to Jammu and Kashmir State Power Development Corporation (JKSPDC) by the Union Coal Ministry in the month of July 2013 for a period of 25 years. This block was allocated on the recommendations of the Inter-Ministerial Commi-ttee and under auction by competitive bidding, official sources told EXCELSIOR.
This coal block having geological reserve of 130 and 266 Million Tonnes respectively was allocated to JKSPDC by exploration jointly with National Thermal Power Corporation Limited keeping in view lack of experience of JKSPDC in this field and expertise of NTPC in this particular field, sources further said, adding this was for the first time in the history of Jammu and Kashmir that any coal block was allocated to State’s key agency in the power sector.
At that time, the Coal Ministry had explicitly told the Jammu and Kashmir Government that all prerequisites with regard to formulation of Joint Venture Company by the joint allottees shall be completed as expeditiously as possible so that work on exploration is started in a time-bound manner.
Thereafter, the Board of Directors of Jammu and Kashmir State Power Develo-pment Corporation engaged M/s SBICAPS, country’s largest domestic investment bank offering the entire gamut of investment banking and corporate advisory services, for analysis of various options and making suggestions with regard to location of end use plant, sources said, adding M/s SBICAPS, in its report, mentioned coal availability of 3.40 million tonnes per annum and the installed capacity was worked out at 660 MW.
After going through the report of the M/s SBICAPS, the State Government vide Order No. 131-PDD dated June 20, 2014 approved the formation of a Joint Venture Company of Jammu and Kashmir State Power Development Corporation and National Thermal Power Corporation (NTPC) with an equity stake of 33:67 respectively, sources informed. However, despite lapse of one and half year since the issuance of this order, the Joint Venture Company could not be floated.
“During the past over one and half year, the file relating to floating of JVC is shuttling between Law and Finance Departments and JKSPDC and this clearly indicates the level of non-seriousness towards the vital project at various levels otherwise one and half year is a huge period to sort out any issue”, sources said, adding “the inordinate delay in floating of JVC despite signing of formal Memorandum of Understanding (MoU) with NTPC is also the testimony of lack of supervision by the top brass of the Power Development Department and the successive Power Ministers”.
In response to a question, sources said that formulation of JVC is the foremost step as all other activities vis-à-vis start of exploration would be carried out only through the Joint Venture Company, which would be formally registered with the Registrar of Companies.
“In view of soft-paddling on formulation of JVC, nobody knows when the State would be able to obtain benefit of the coal block as exploration activities would take minimum of three years and thereafter establishment of plant would take another 2-3 years”, sources said, adding “it is really a matter of serious concern that despite getting coal block for first time in the history of J&K, all the concerned authorities are adopting dilly dallying approach vis-à-vis completion of formalities”.
They further said, “it is unfortunate that despite facing power crisis the State is not initiating steps on war-footing to obtain benefit of the coal reserve”, adding “since the Chief Minister, Mufti Mohammad Sayeed and Deputy Chief Minister, Dr Nirmal Singh are going to review the performance of JKSPDC within next two days, this issue should be thoroughly discussed so that all the impediments especially with regard to establishment of Joint Venture Company are removed at the earliest and further steps are initiated”.
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