Union Power Secy resolves dispute, directs NHPC to pay Rs 96 cr to PDD

Mohinder Verma
JAMMU, Oct 31: Resolving long pending dispute between National Hydroelectric Power Corporation and Power Development Department of J&K Government, Union Power Secretary Pradeep Kumar Sinha has directed the Indian hydro power generation company to pay Rs 96.23 crore as charges for electricity used during the construction of 390 Mega Watts Dulhasti Power Project in Kishtwar district.
Official sources told EXCELSIOR that NHPC had drawn electricity directly from Salal Power Project during the construction of Dulhasti Power Project on river Chenab in Kishtwar district without the concurrence of State authorities. Subsequently, the State Government raised serious objections over direct withdrawal of electricity without seeking the consent of Power Development Department, which is the only authorized power distributor of the State.
“In repeated communications to the NHPC authorities during the past several years the State Government conveyed that direct transfer of power from Salal to Dul Hasti from 1992 to 2002 was tantamount to illegal use of power and against the guidelines laid down for power usage”, sources said.
However, the NHPC refused to make any payment for the electricity consumed during the construction of Dulhasti Project and raised the issue at different forums. Annoyed over the continued reluctance of the NHPC, the State Government officers conducted a detailed exercise to evaluate the loss to the exchequer on account of illegal transfer of power between the two entities, sources said.
After considering various parameters, the State Government officials claimed that NHPC owed around Rs 169 crore to the PDD for illegal use of power and conveyed the same to the country’s hydro power generation company. Again, there was no positive response from the NHPC and this prompted the State to deduct Rs 169 crore from the amount payable to the NHPC for purchase of power from Salal.
The several years long dispute between NHPC and PDD, which even drew the attention of the Raj Bhawan, finally landed in the court of Union Ministry of Power for resolution. However, prior to meeting at Union Power Ministry, both the entities held confabulations about a week back wherein the figures vis-à-vis usage of electricity for construction of Dulhasti project and wheeling charges imposed by the NHPC on PDD during the pre-ABT (Availability Based Tariff) period were worked out to the tune of Rs 96.23 crore.
It is pertinent to mention here that ABT is a frequency based pricing mechanism for electric power. The ABT falls under electricity market mechanisms to change and regulate power to achieve short term and long term network stability as well as incentives and dis-incentives to market participants against deviations in committed supplies.
“Yesterday, the Union Power Secretary Pradeep Kumar Sinha resolved the long pending dispute between two entities and directed the NHPC to pay Rs 96.23 crore to J&K PDD”, sources said, adding “now this amount will be adjusted in Rs 169 crore deducted by the Government from the amount payable to the NHPC for purchase of power”.
Principal Secretary Power of State Government, A K Mehta represented J&K in the meeting chaired by Union Power Secretary.
With the intervention of Union Power Minister, not only the long pending dispute between two entities has been resolved but also PDD received tariff of two decades old period.