SRINAGAR: To fully exploit the huge potential of its power generation, the Jammu and Kashmir Government has opened the sector to private enterprises. Chief Minister Mufti Mohammad Sayeed on Wednesday laid the foundation stone for such a project in the remote Ahrabal area of South Kashmir.

To be built by Jai Prakash Industries (JPI), this 15 MW hydro-power project will be built, owned, operated and returned (BOOT) to the State after 40 years. This is one of the ten micro-hydel projects that independent power producers (IPPs) would set up under the State's maiden liberal

hydro-power policy to get private investment in exploiting the state's abundant water resources. Mr. Sayeed is keen to see this happening to overcome the power crisis in the State.

The policy to lease out the work was adopted in 2003. It is the Jammu and Kashmir Power Development Corporation (PDC) which prepares the pre-feasibility report (PFR) and then the allotment is made to the highest bidder per MW. Too woo these producers, IPPs are treated as industry which entitles them to incentives available to industrial units in backward areas. According to the BOOT agreement, the projects are offered for 40 years and the State would get a royalty of 15 per cent only after 15 years of implementation. To construct a power project is a

time-bound process for which the IPPs have to prepare detailed project reports within two years of the allotment and complete the project in four years. The PDC has the preferential right of buying the produce at Rs.2.47 a unit. "This is going to help the State a great deal in using its scattered water resources for power generation" said Basharat A. Dhar, Commissioner/Secretary, Power Development Department.

In Ahrabal, the 15 MW project is likely to help the militancy infested area to develop economically. "The Chief Minister is keen on starting work here as soon as possible", Sameer Gaur, JPI's J&K incharge said. The project includes not only the power unit but also a polytechnic, a renovated park and a rest house besides restoration of the age-old glory of the Ahrabal's famous waterfall. One of the famous tourist spots, Ahrabal is over 80 km south of Srinagar. These extra works would cost JPI around Rs. 10 crores over and above the project cost estimated at around Rs. 105 crores. JPI is also executing the prestigious Baglihar power project and is in the frontline of the NHPC owned Dul-Hasti project in Doda.

According to Mr. Dhar, the project envisages lifting 13.4 cumecs from the Veshu nulla — a tributary of Jhelum — ahead of the famous waterfall and taking it through a four km tunnel to Vutter Chuk near Vatu where the power would be generated. He denied that the project will in any way affect the famous waterfall. "The river has 50 cumecs in summer. In winter the power house would consume only one third," said Mr. Dhar. Stating that the power sector is going to give a fillip to the economic activity in J&K, Mr. Dhar said "The investment takes place in the remotest areas and power generation is pollution free and does not devour the raw material. Then it has a huge market available within the State and the investment is long term." Of the 10 projects two firms are from outside, four Srinagar based, two Jammu based and the remaining two a joint venture between State units and outsiders.

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