Mohinder Verma
JAMMU, Jan 2: The work on prestigious 850 Mega Watt Ratle Hydroelectric Project on river Chenab in Kishtwar district is unlikely to resume in near future as Hyderabad-based company has put several conditions, which may not find any favourable consideration from the State Government because of their widespread ramifications on other ongoing power projects in Jammu and Kashmir.
Reliable sources told EXCELSIOR that in order to end the impasse over Ratle Hydroelectric Project, the Managing Director of Jammu and Kashmir State Power Development Corporation, Mehraj Ahmad Kakroo yesterday called the top brass of M/s GVK from Hyderabad and had threadbare discussion on all the contentious issues, which led to stoppage of work on the project in July last year.
Though local issues vis-à-vis employment and congenial atmosphere were almost resolved in the meeting, the company put several tough conditions before the MD Power Development Corporation for re-start of the work due to which more dark clouds have started hovering over the project as it would not be easy for the Government to concede these conditions, sources said.
However, Managing Director of Power Development Corporation formally asked the company to restart work within 15 days positively with the assurance that other conditions could be discussed after formation of new Government in next some days. “But the company has made up its mind not to resume the work till all the conditions are fulfilled by the State Government. The company officers even dropped enough hints about winding up and leaving the project in the present stage”, sources informed.
According to the sources, the company has demanded waiving of Water Usage Charges, which it will have to pay under Jammu and Kashmir Water Resources (Regulation and Management) Act. “The company is justifying this condition on the ground that this Act came into force after signing of agreement for execution of the project as such cannot be made applicable for Ratle Project. The company has made it clear to the Government that it would not be in a position to bear huge financial loss on account of Water Usage Charges”, sources added.
M/s GVK has also put a condition for exemption of taxes on the machinery to be brought into the State for the project on the ground that this was in-principle agreed to under the policy announced by the Union Government whereby all the projects above 300 Mega Watt capacity were declared as Mega Power Projects in respect of Jammu and Kashmir and Northeast.
“Despite being aware of the fact that this policy was later withdrawn by the Union Government, the company wants benefits to be extended in respect of Ratle Project”, sources regretted.
They informed that company has also put a condition for compensating the financial losses in case work on the project comes to halt in future due to the objections raised by the Pakistan under Indus Water Treaty. “These conditions were never discussed and kept in the provisions of the contract when the process for signing of the agreement was going on”, sources further regretted.
According to the sources, it would not be possible for the Government to meet these conditions of the company as same would open Pandora’s box and leave impact on other ongoing projects. “The Government may think more than once to arrive at any conclusion in this regard as meeting such conditions would land it in complex situation”, they added.
In such a situation, the first ever initiative of awarding power project on tariff based international competitive bidding will meet the unexpected fate and project would face permanent closure at infancy stage.
When contacted, Managing Director, PDC said, “we don’t want company to suffer losses but at the same time we should stick to the terms and conditions of the agreement”, adding “the issues of the company can be resolved within the ambit of the contract”.
“Both the Government and company would be at loss in case this deadlock persists as we will be losing generation of power and they would suffer financially”, he said, adding “we are keen to facilitate and resolve the issue and company should understand this”.
In response to a question, Mr Kakroo said, “in case the company fails to re-start the work within next 15 days we will take recourse to the provisions of the contract”.
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