Projects are conceived and implemented with a specific purpose for development. Two such projects, of nine megawatts each, were assigned to Dah and Hanu in the Leh district with a set deadline to complete them. One project got completed, but the CAG of India detected that JKPDC failed to evacuate power from this hydroelectric project in Ladakh, resulting in a revenue loss of Rs 16.45 crore. The Corporation also failed to impose a penalty on defaulting independent power producers to the tune of Rs 12.60 crore, despite an explicit provision in this regard in the Hydro Policy. The failure of JKPDC to plan the construction of a power evacuation system in parallel with the commissioning of two projects and ensure completion of the transmission line by the contractor within the allotted timelines led to non-utilisation of power generation of 59.37 million units and a consequent loss of revenue of Rs 16.45 crore. The progress of the construction of the transmission line was very poor, and the financial progress of the project was only 29 per cent. A penalty at the rate of Rs 5 lakh per MW was to be imposed on the IPP for every month of delay in financial closure before resetting the timelines. However, JKPDC did not impose penalties on defaulting IPPs. JKPDC was supposed to facilitate the submission of proposals for obtaining Central Financial Assistance from MNRE by the IPP within six months of the start of work or six months of receipt of the first disbursement from the financial institution. However, JKPDC failed to submit proposals to MNRE, resulting in no incentives being availed from GoI for ensuring the economic viability of HEPs. Practically, it is the failure of JKPDC at every stage, which is serious enough for departmental action against the erring officials. All this led not only to financial losses but also hampered the development of the region. The administration must look into the matter and take remedial action to avoid such losses in the future.
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