Srinagar, Mar 17: The Jammu and Kashmir government on Monday clarified its stance regard-ing the transfer of power projects to NHPC, stating that the decision was made to ensure finan-cial viability and leverage technical expertise for effective execution.
The clarification came in response to a question raised by MLA Mushtaq Ahmad Guroo in the Assembly about the transfer of power projects.
The chief minister informed that a MoU (memorandum of understanding) was signed between Jammu and Kashmir State Power Development Corporation (JKSPDC) and NHPC on January 3, 2021 for the execution of 1,856 MW Sawalkote HEP, 258 MW Dulhasti Stage-II and 240 MW Uri-I stage-II by NHPC in built, own, operate and transfer (BOOT) mode for a period of 40 years.
The Chief Minister explained that the decision was driven by the ₹20,000 crore investment re-quired for the Sawalkote project. Given NHPC’s financial strength and technical expertise, the project was assigned to NHPC to ensure its timely completion. NHPC is already operating key hydropower projects in the Union Territory, including Uri-I (480 MW) and Dulhasti Stage-I (390 MW).
As part of the agreement, Jammu and Kashmir is entitled to 12% free power from these projects, as well as a 1% Local Area Development Fund (LADF). Additionally, the government has the first right of refusal to purchase 50% of the generated power at rates set by the regulator. How-ever, these projects are yet to be commissioned.
The Chief Minister also updated the House on the joint venture projects transferred to NHPC. These include Pakal Dul (1000 MW), Kiru (624 MW), Kwar (540 MW), and Ratle (850 MW), with NHPC holding 51% equity and JKSPDC holding 49%. The physical progress of these pro-jects varies, with Pakal Dul at 65% completion and Kwar at 18.65%.
The Chief minister further clarified that no new power projects are currently being considered for transfer to NHPC. However, discussions are ongoing regarding the possible retrieval of projects such as Salal (690 MW), Uri-I (480 MW), and Dulhasti (390 MW) from NHPC.
