SRINAGAR: All the three business chambers of Kashmir have jointly written an open letter to the visiting Prime Minister Narindera Modi, seeking return of power projects which are currently run by the government-backed NHPC. The letter has also wondered as to why Rs 18000 Crore out of the prime minister’s package of Rs 24000 was handed over to NHPC for executing infrastructure projects in the state’s power sector.
The letter is signed by the President of Kashmir Chamber of Commerce and Industries Sheikh Ashiq Ahmad, President of Federation Chamber of Industries Kashmir Muhammad Ashraf Mir and Chairman of Kashmir Economic Alliance M Yasin Khan.
“As the J&K is suffering from non-transfer of all power projects which are being presently run by NHPC, the Kashmir Valley in particular is fast going back to medieval period with no hope for economic self-sufficiency and development not withstanding all the packages announced by the then Honble Prime Minister of India Dr. Manmohan Singh,” the letter states.
The letter lists some observation to substantiate the chamber’s demand for liberal financial aid to the state.
The points raised in the letter are as under
1. As per Task Force constituted by the then Honble Prime Minister headed by Dr. C. Rangarajan, the report of which was submitted in November, 2006 has recommended transfer of Salal Hydro Power Project to J&K State.
2. Later on the Group of Interlocutors for J&K appointed by GOI in their final report endorsed the recommendation of Rangarajan Committee for transfer of Dulhasti Hydel Project from NHPC to State Government. It also recommended that the Central Govt. should not only compensate the State by meeting equity capital needs of all its Hydel project, to be taken in the State Sector over and above the States plan outlays, but also to enhance the States share of Power from the NHPC-run Hydel project from existing 12% to, say, 30% and gradually raise it to 100% in the next 5 years, as a special case. Thus, the power generation under the Central sector should be transferred to the State. Besides, the State is extended adequate funds to exploit water resources. This alone can make the economy self- reliant.
The said Task Force had analyzed two aspects
a) Compensation to NHPC which was fixed at 875 Crore as the estimated fair value of the project in the year 2006.
b) The existing beneficiary States which will need to be compensated for loss suffered on account of purchase of power at higher rates which was estimated to 2862 Crore.
This was based on argument by J&K to compensate Indus Water Treaty losses and was suggested by the Task Force to be compensated through Central Assistance.
3. The Trade organizations in a detailed presentation to the then Prime Minister of India and to all the functionaries of Government of India connected with this as well as State Government have pointed out the following:-
The letter further states that the green revolution in Punjab was possible only due to lopsided Indus Water Treaty at the cost of J&K. The trade body has reiterated the demand for the return of not only Salal but Dulhasti as well as Uri projects back to the J&K State. The Trade organizations have even opposed the discriminatory Joint Venture (Chenab Valley Power Development Corporation) which has not taken care of the interests of J&K State where it has not even a clause for transfer of these projects to State after a period which is applicable for even private sector projects in the Power Sector under the Scheme of BOOT Agreement.
The Trade organisation had demanded that the then Honble Prime Ministers Package of Rs.24000 crores out of which 18000 crores was meant for Power Projects but unfortunately given to Central Agency (NHPC) for implementation. Although KCC&I had demanded 18000 crores to be given to State for taking care of equity in all the projects for taping 20000 MWZ Hydro Electric Power Potential in State.
The letter states that even a senior minister of J&K Government had publicly admitted that the Agreements between NHPC and State Government were missing from the records of the State as such the NHPC is illegally operating all the projects in our State.
The Demands
i. To initiate the process of return of all projects set up by Central Agency NHPC (wholly owned by Government of India) previously which have already paid back their capital with the residual price as calculated by Dr. C. Rangarajan in case of Salal to the tune of Rs.860 crores in 2006 and accordingly calculated for other projects, Uri and Dulhasti, as an interim compensation for Indus Water Treaty to be compensated through Central assistance.
ii. The Trade organisations demand that all the recommendations made by different commissions appointed by Central Government form time to time in regard to augmentation of State resources by way of transfer of Power projects operated by NHPC be implemented in letter and spirit.
iii. As your goodself is inaugurating the Uri II project wont it be one of the best CBMs to dedicate it to people of J&K State
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