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This is an archive article published on October 11, 2011

J-K Govt intends to buy back Uri-I power project from NHPC

Uri-I project is expected to generate annual revenue of Rs 1,000 crore to Rs 1,500 crore for the state.

The Jammu and Kashmir Government has said it intends to buy back the Uri-I power project from NHPC for an estimated Rs 2,100 crore within two years.

“The government intends to buy back Uri-I project,valued at Rs 2100 crore,from the NHPC within two years which is expected to generate an annual revenue of Rs 1,000 crore to Rs 1,500 crore for the state,” Public Health Engineering,Irrigation and Flood Control Minister Taj Mohiuddin said at a seminar here yesterday.

Mohiuddin said the Government intends to use water usage charges,levied on power generating companies,to strengthen power infrastructure in the state.

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He said water resources were a trust of the people of the state with the government and they have first right over these projects.

Giving the background of hydel projects in the state and the interaction the Government has had with the NHPC,Mohiuddin said Salal hydel project was initially conceived by Maharaja Pratap Singh in 1922 and in 1969,the Centre offered to build the project.

“In 1975,the state entered into an agreement with the Centre about the project execution which was to be built by the state with free 50 per cent power to J-K and remaining power sale to be shared equally between state and the Centre,” he said.

However,the agreement was not adhered to by the company,the minister said.

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On other projects,Mohiuddin said the balance portion of Ravi canal upstream Basantpur in Kathua district would be completed in three years which would facilitate irrigation to 1.33 lac acres in the districts of Kathua,Samba and Jammu. This,he said,would usher in green revolution in J&K,making it a food-sufficient,from food-deficient,state. Mohiuddin also mentioned the non-implementation of the agreement on Ranjit Sagar Dam by the Punjab government. He said J&K has contributed 1.12 lac acres to the dam,including 22 villages of Kathua district,but it is yet to get its share from it,including 120 Megawatts of balance power. He said the Presidential reference on the issue remained pending without a hearing for 30 years. “Since my taking over as the minister in charge,I pursued the issue and now the state has framed its reply on it,” Mohiuddin added.

Former Deputy Chief Minister and PDP leader Muzaffar Hussain Baig suggested the strengthening of Power Development Corporation in the state by making it a listed company and issuing power generating licences through it. Baig called for brining a legislation in the Assembly seeking share of the profit from NHPC on account of the spaces it has been occupying without any lease deed from or agreement with the State Government.

He also demanded the Centre to allow the state to take loans for power generation from foreign financial institutions in view of the low interest rates.

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