Restrictions imposed in the provisions of Indus Water Treaty discriminatory towards J&K State

New Delhi/Jammu, October 29 (Scoop News) – While highlighting hydel treasure available in the State of J&K, the Chief Minister Omar Abdullah while addressing the Meeting of Group of Ministers for Power of the different States of the country, said that expeditious harnessing of hydel power potential of 20,000 MW will not only make J&K self-reliant but will also help to meet the power requirement of the entire country. He said that despite huge hydel potential, J&K continues to face an acute shortage of energy, particularly in winter, when power curtailment schedules stretching up to 10 hours have to be implemented.  

Union Minister of Power,  Sushil Kumar Shinde and Power Ministers of all the States of the country attending the meeting.

In his address, Chief Minister  Omar Abdullah pointed out that J&K state has suffered heavily as a result of discriminatory provisions enshrined in the Indus Water Treaty. He said that the State has lost its right of impounding and optimally utilizing the waters of Indus, Chenab and Jhelum rivers to take care of the seasonal variations in power demand. “But for the restrictions imposed by the Treaty, the State could have created storage facilities to take care of its increased requirements of energy during winter months and we would not have been forced to buy costly power under short-term arrangements,” the Chief Minister said, adding J&K has not been compensated for this loss despite the agreement in principle to do so expressed on several occasions.

      Abdullah called for a symbiotic relationship between the State and the Centre to ensure that additional resources are made available in the State as well as Central sectors to optimally utilize precious water resources which are otherwise going waste.

            Flagging the issue of reduction in transmission and distribution losses as his priority,  Abdullah said though the generating activity expect T&D activity has been unbundled, “The State Cabinet has in principle approved unbundling of transmission & distribution of electricity and engages a consultant for the purpose,” he said, hoping Centre will extend all possible support for the restructuring, corporatization and capacity building of its utilities.

            On the issue of purchase of power through competitive bidding route, he said J&K had gone a step ahead with J&K State Power Development Corporation awarding one hydel power project, Ratle-690 MW under IPP (BOOT) mode after following competitive tariff bidding process. “To make this possible, necessary amendment was carried out in the J&K State Electricity Regulatory Commission Act, thereby facilitating signing of Power Purchase Agreement (PPA) with the promoter. The electricity is to be purchased from the proposed unit at a competitive rate of Rs.1.44 paise per unit. Thus, for new power projects to be developed in the State through IPP mode, a transparent mechanism for competitive tariff bidding has been established successfully.”

            Stating that the Central Electricity Act 2003 is not applicable to J&K, the Chief Minister said the State has enacted its own J&K Electricity Act, 2010  on the lines of Central Electricity Act 2003. “The State Electricity Regulatory Commission is in place since 2004 and has already notified Open Access Regulations in 2006. Our hydel policy also provides for open access. The Tariff Orders are also being issued by the State Electricity Regulatory Commission on regular intervals,” he added.

             Abdullah said the Tariff Policy and State Electricity Policy, in pursuance to section 3 of J&K State Electricity Act 2010 on the lines of Central Tariff Policy and Central Electricity Policy, are under preparation and shall be notified shortly. “We are at in the process of formulation of rules of J&K Electricity Act 2010. Besides, J&K Energy Conservation Act is also underway.

With a view to overcome the operational inefficiencies leading to high AT&C losses, the Government had engaged a consultant – M/s The Energy & Resources Institute, New Delhi for preparing a blueprint for bringing about a turnaround in power sector. “M/s TERI in its recommendations has emphasized the need to bring about changes in legal framework in this sector, besides underlying the need for structural un-bundling of the Power Development Department,”  Abdullah said. 

            The Chief Minister said J&K has initiated action on the implementation of the recommendations of the engaged consultant. The milestones achieved in pursuit of the turnaround include enactment of J&K State Electricity Act 2010 on the lines of Central Electricity Act 2003, unbundling of transmission & distribution approved by State Cabinet, RFP for engagement of consultant (in consultation with M/s TERI) for unbundling of T&D in J&K to be floated shortly and State Electricity Regulatory Commission made fully functional.

            The Chief Minister reiterated the urgent need to initiate measures to mitigate the hardships of the people of J&K by way of liberally allocating funds for the State sector projects and by implementing recommendations in this behalf of various Working Groups constituted under the aegis of the PM’s Round Table Conferences on J&K. “It may be pertinent to mention here that WGs on Economic Development of J&K, has recommended transfer of Dul Hasti HEP (390 MW) to the State. The recommendation needs to be implemented at the earliest,” the Chief Minister said.

            The Chief Minister said the State government has started implementation of 450 MW Baglihar HEP Stage-II at an estimated cost of Rs.3420.00 crores. “We have requested Centre to extend the same level of financial assistance for the execution of Baglihar Stage-II as was done in case of Baglihar HEP–I,” he added.

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