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November 22, 2011

J&K to raise funds from the markets for buying Salal and Uri power projects from NHPC: Chief Minister…

  • The Jammu and Kashmir Chief Minister, Mr Omar Abdullah, on Monday said the State would raise funds from the markets for buying Salal and Uri power projects from NHPC. "It is an ongoing process... we will raise funds from the market for paying NHPC the depreciated price of these projects," Mr Abdullah said on the sidelines of a function.

  • The State Government had expressed its intention of taking back the two power projects - Salal (690 MW) and Uri (390 MW) - from National Hydro Power Corporation (NHPC) which is seeking nearly Rs 2,600 crore as compensation for handing over these projects. Mr Abdullah sought to dispel the notion that the State Government had entered into a confrontation with NHPC over water usage levied on power generators in the state.

  • "There is no confrontation with NHPC... 50 per cent of the profit of NHPC comes from the power generated in the State. So, the State is also entitled to its share of resources. We are even levying the State-run Power Development Corporation and other private power producers and not just the NHPC," he added. Mr Abdullah also said his governme nt had launched various mega, medium and small projects in the power sector with the aim of generating 4,000-5,000 MW of additional power within the next seven years and help the growth and development of all sectors in the State.

  • He said huge losses incurred by the State on account of power purchases, which have reached Rs 2,000 crore, were affecting the development and welfare schemes of the State. He said while the Centre has been liberal in funding the State, it cannot go on forever. "Every year, I have to cut a sorry figure for such huge losses. I am not saying we can overcome this problem overnight but let us reduce the losses this year to just Rs 1,000 crore and to Rs 500 crore by next year. The additional funds will be spent on development then," he added.

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