Friday 22 January 2016

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No progress on return of power projects, boost to energy sector in past 10 months

The ‘U-turns’ by the Bharatiya Janata Party-led government in New Delhi in the past 10 months on supporting the Sate’s plans to explore the potential in energy sector have come under focus as the Peoples Democratic Party readies to form the government formation in Jammu and Kashmir. From last minute ‘trimming’ of the Prime Minister’s ‘development package’ to New Delhi’s refusal to approve a share in profits of the National Hydroelectric Power Corporation (NHPC), the State faced several setbacks despite an agreement between PDP and BJP on plans to develop J&K’s energy sector.

In the “Agenda of Alliance”, the coalition partners had agreed that for addressing the “real source of J&K’s fiscal problem” and paving way for making J&K a fiscally-autonomous state, the State Government would work with New Delhi to explore modalities for transfer of Dulhasti and Uri hydropower projects to J&K. However the State had to bear with last minute trimming of Rs 5000 crore assistance that had been approved by the PMO for the state for buying back two power projects from the NHPC. Besides, another Rs  23000 crore that was due to the state under the Prime Minister’s package for harnessing power potential and developing hydropower projects and augmenting state’s power infrastructure was allegedly unilaterally cut by New Delhi.
“We had got assurance from state Government that it will get back the power projects from the NHPC. But we were left disappointed at the last minute despite the fact that the buying back of projects was part of the Agenda of Alliance between PDP and BJP,” said ShakeelQalander, member of a civil society formation in Kashmir which has been at the forefront of the demand for return of power projects to the state from NHPC.

Sources said former Finance Minister DrHaseebDrabu, who had held negotiations with Government of India on developmental package, had got “commitment” from both Union Finance Ministry and the PMO on assistance for the state’s power sector. However against the expected Rs 1.8 lakh crore the Prime Minister NarendraModi, on November 7 last year, announced only Rs 80000 crore. There was no word from the New Delhi on the trimming.

The civil society has been reiterating that harnessing state’s vast hydropower potential was the only way to generate resources needed for realizing development plans and combating growing unemployment, apart from mitigating the power woes.
“However the desired objectives in the power sector have come to a grinding halt owing to non-cooperation from Government of India and unwillingness of the state government to pursue the matter,” said Qalander.

In June last year, the Union Minister for Power PiyushGoyal had out-rightly rejected any proposal to return NHPC-owned power projects to the state and ruled out revision of royalty agreements between State and NHPC on Corporation-owned projects.

“The message from New Delhi is clear that they don’t want sustainable development of Jammu and Kashmir as power sector holds key to development and resource generation. The onus lies on the state’s political parties now,” said a senior state government official.

The move by New Delhi was also seen as a “major blow” to long term plans for reviving state economy by addressing the growing power demands on one hand and augmenting state’s budgetary health on the other, in the longer terms.

Despite having a potential of around 20000 MW, the state is struggling to meet the local power demands, which have grown beyond 26000 MW. The inadequate power has been forcing the government to import energy from outside which is a major source of drainage to state economy.

“During the 2014 election campaign, apart from other issues, the PDP had also based its campaign on the assurance to get back the power projects from the NHPC. Today people are disappointed with the government, as the dreams for development have not materialized. This is challenge to PDP that is likely to return to power,” said a political analyst.

A senior PDP leader said the agenda of alliance was the blueprint for governing the state.
“It was accepted by the BJP which represent rest of the country. There can’t be any re-negotiation on it (agenda of alliance) and the wheel hasn’t to be re-invited,” said the PDP leader.
He acknowledged that power sector was crucial for economic development.

“There is a political initiative to the agenda of alliance but the picture will be completed only once the economic initiatives in different sectors like power are taken and fulfilled,” said the PDP leader.


Courtesy: Greater Kashmir

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