Jammu, December 21 (Scoop News) – In a land mark step towards giving significant fillip to the power generation in the State, Promoters Agreement (PA) between Jammu and Kashmir State Power Development Corporation (JKSPDC), National Hydro Electric Power Corporation Ltd. (NHPC) and Power Trading Corporation India Ltd. (PTC) was signed here on Tuesday in presence of Chief Minister, Omar Abdullah for execution of 1000 MW Pakal Dull, 600 MW Kiru and 520 MW Kawar Hydro Electric Projects as a joint venture.
Commissioner Secretary Power, Basharat Ahmad Dar, Managing Director, JKSPDC, Shaleen Kabra signed the agreement on behalf of the Jammu and Kashmir State Government while the Chairman-cum-Managing Director, NHPC, S. K. Grag and Chairman-cum-Managing Director, PTC, P. N. Thakur signed on behalf of their organizations.
Speaking on the occasion, the Chief Minister pined hope that all the three players of the joint venture will put in every effort to accomplish the task in a given time line. “There are many pit-falls and bottlenecks in your road”, he told them advising to take the joint venture as a challenge and deliver to the best expectations of the people.
Omar Abdullah said that his government is endeavouring hard to transform Jammu and Kashmir from a power deficient State to a self-reliant one and today’s agreement between the State, NHPC and PTC would pave the way for achieving the goal. He impressed upon the signing parties to immediately make the joint venture company operational and take pro-active measures for faster project implementation.
The Chief Minister said that the launch of the Company and the implementation of projects would provide twin benefits – one on the front of generation of electricity and another as vast employment creation for skilled and unskilled youth in the State especially living in backward areas where the projects are located. “I hope all the three parties would focus on enhancing employability of the youth as also ensuring employment to them”, he said and stressed for pooling of energies and capacities to make the joint venture a success. “Better utilization of rivers to the benefit of the State and its people is our concern”, he said and asked the Company partners to take best advantage of the potential available and the support from the government for harnessing this potential in an efficient manner.
“We have placed a capable, experienced and reputed person M. Y. Khan as the Chairman of the Company”, he said adding that the Managing Director and Joint Managing Director by NHPC and JKSPDC along with the Chairman would put in their enormous capacity together to see through the completion of the projects successfully.
The Promoters Agreement (PA), a sequel to the MoU signed between the parties on October 10, 2008, lays down the framework for the execution of the projects in joint venture by JKSPDC, NHPC and PTC through a joint venture company named “Chenab Valley Power Projects Ltd”. The JKSPDC, NHPC and PTC will hold equity stake in the proportion of 49:49:2 and the benefits of the joint venture shall be shared by respective parties in proportion to their actual contribution in share holding of the company.
Jammu and Kashmir State shall get 12 percent free power generated from the projects besides, an additional one percent free power for local area development fund.
Out of the balance of 87 percent power, the J&K would have the right to purchase power from the company in proportion to the share of JKSPDC in the equity of the company at the price determined as per regulatory norms. After this, the balance power will be sold by NHPC and PTC at the market price to the purchaser with the first right of refusal being given to Jammu and Kashmir.
The 80 percent of Group C and D staff and 49 percent Group A and B staff in the company shall be permanent residents of Jammu and Kashmir State.
The Chairman of Board of Directors of the Company shall be a nominee of the State Government and accordingly M. Y. Khan has been already nominated by Jammu and Kashmir as Chairman of the Company. The post of Managing Director and Joint Managing Director shall be held by the nominees of the NHPC and JKSPDC respectively.
With the completion of these projects Jammu and Kashmir shall get an assured share of about 1179 MWs of power with the first right of refusal for the remaining 941 MWs.
Present on the occasion were Minister of State for Power, Shabir Ahmad Khan, Chief Secretary, S. S. Kapur, Commissioner Secretary Finance, Sudhanshu Pandey, Chairman, Chenab Valley Power Projects Ltd, M. Y. Khan and other senior officers.