Mohinder Verma
JAMMU, Feb 5: The failure of PDP-BJP Coalition Government to timely clear the power purchase bills is costing nearly Rs 450 crore to the State exchequer per annum, which otherwise could have been utilized for improvement in the power sector infrastructure and construction of small hydroelectric projects.
Moreover, uncertainty is still prevailing over development of coal block in Odisha, which was jointly allocated to Jammu and Kashmir State Power Development Corporation and NHPC in the year 2013.
Power Development Department is purchasing power worth thousands of crores of rupees every year from different power generating companies of the country to meet the requirement of all categories of consumers in the State. This is notwithstanding the fact that State has huge potential to become self-reliant in power sector.
The power purchase bills are required to be cleared within 60 days and if this stipulation is strictly adhered to by the Power Development Department it becomes entitled to 2% incentive (rebate).
However, the State Government is not timely clearing the power purchase bills thereby continuously losing 2% incentive as well as paying hundreds of crores of rupees as interest on the bills every year.
As per the data provided by the Deputy Chief Minister Dr Nirmal Singh, who is also Minister Incharge Power, in reply to the question of Udhampur MLA in the Legislative Assembly, the Government has paid Rs 1055.92 crore interest on the power purchase bills during the past three years. Besides this, the Government has lost Rs 120 crore worth incentive every year for failure to clear the power purchase bills within the stipulated time-frame of 60 days.
During 2015-16 financial year, an amount of Rs 481.527 crore was paid as interest for late payment to NTPC, NHPC, NPCIL, SJVNL Rampur, PTC India Limited, APCPL Jhajjar, NVVN and PTC etc.
Similarly, during 2016-17 financial year, an amount of Rs 339.915 crore was paid as interest to the power generating companies of the country while as an amount of Rs 234.481 crore was paid as interest during 2017-18 financial year (till November 2017).
About non-availing of 2% incentive, the Deputy Chief Minister informed the House that for availing this benefit Letter of Credit (LC) is required to be opened by the Power Development Department.
“This is possible once the trading company is established by the Government for which the process is still underway”, the Minister Incharge Power said while responding to another question of Udhampur MLA Pawan Gupta.
“Had nearly Rs 450 crore been saved every year by timely clearing power purchase bills and availing benefit of 2% incentive, the Government would have been in a position to utilize this money for improvement in the power infrastructure as well as for completion of small hydroelectric projects whose fate is hanging in balance for want of funds during the past several years”, sources said.
Moreover, no time-frame has so far been fixed for development of coal block which was jointly allocated to Jammu and Kashmir State Power Development Corporation and NTPC in the year 2013 by the Union Coal Ministry.
In the coal block situated at Kudanali-Laburi in Odisha, NTPC has share of 266 MT and JKSPDC 130 MT out of total geological reserves estimated to be 396 MT for proposed 660 MW thermal project.
Deputy Chief Minister informed the House that JKSPDC and NTPC signed the Joint Venture Agreement on June 15, 2015 for exploration, development and operation of the jointly allocated coal mining block in Odisha.
The draft Memorandum of Association and Articles of Association of the Joint Venture Company received from NTPC Ltd were submitted to the Power Development Department in September 2015 for vetting of the same by the State Law Department and the same have since been forwarded to NTPC for further action.
“NTPC, in the meanwhile, communicated to JKSPDC that it has requested Union Ministry of Power to obtain concurrence of NITI Aayog as per the requirement of office memorandum dated August 10, 2016 issued by Department of Public Enterprises, Government of India”, the Deputy Chief Minister further informed the House.
However, he said that response from NTPC was awaited regarding concurrence of NITI Aayog.
All this indicates that no time-frame can be specified for start of work on development of coal block in Odisha.
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