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| J&K PDD faces brickbats from Central power providers, owes them more than Rs 1700 crores | | Deficit hovering over 494 MWs | | Syed Junaid Hashmi
Early Times Report
Jammu, Nov 10: Too much noise is being made about power reforms in Jammu and Kashmir but the State Power development Department (PDD) continues to face brickbats from the central power providers for alleged prolonged delay in making payment for power purchased from them.
From National Hydroelectric Power Corporation (NHPC) to Satluj Jal Vidyut Nigam Limited, central power providers have approached Northern Region Power Committee (NRPC) with a complaint against Power Development Department (PDD) of Jammu and Kashmir for alleged extra-ordinary delay in making payments for the power purchased by it. They have pleaded with NRPC to force PDD J&K to make payments regularly so that they do not face resource crunch.
Taking cue from J&K being given relaxation time and again, other power utilities in the northern region too have started delaying the payments which results in power providers being forced to approach banks and other financial institutions for clearing their liabilities. They have further said that J&K PDD has become habitual of delaying the payments and refusing to adhere to the directions of the NRPC from time to time.
National Hydroelectric Power Corporation (NHPC) has bluntly said that J&K PDD is irregular in making payment of dues and is the major defaulter of the company. NHPC has communicated to NRPC that J&K owes it more than Rs. 1101.40 crores. Despite mounting considerable pressure, NHPC has said that J&K has cared little about making the payments timely. Apart from this huge amount, NHPC has said that the outstanding dues considered under UDAY scheme amounting to Rs 690.27 Crores are yet to be released despite J&K promising to liquidate the amount within no time.
NHPC has reiterated to NRPC that J&K should release the total dues on priority. But the state has preferred nor responding to the repeated requests from the NHPC for clearing its bills and has instead been asking NHPC to clear its water user charges which the company has been regularly depositing in the high court treasury.
Tehri Hydroelectric Development Corporation India Limited (THDCIL) has been supplying quality energy from its presently operating Tehri HPP (1000MW) and Koteshwar HEP (400MW) generating stations to all the beneficiaries of Northern Region. This corporation has also pleaded with NRPC for intervention so that its outstanding dues amounting to Rs. 133.99 crore are also cleared by Jammu and Kashmir Power Development Department (PDD). According to THDCIL, PDD, J&K has also not made any payment after August 27, 2015.
An year has passed since J&K last made payment to THDCIL. The corporation has claimed that due to inordinately delayed payment, the outstanding is rapidly accumulating resulting into severe financial hardships for THDCIL to the extent of forcing it to avail short term loans bearing heavy interest to meet day to day working capital needs. THDCIL has said that it has been earnestly requesting bilaterally as well as through NRPC to release the payments, there has not been much headway in the case of J&K, as the outstanding amount has been steadily increasing.
Further, J&K has also not opened the Letter of Credit (LC) till date even after repeated requests. Central power providers have requested NRPC to force PDD, J&K to open LC on priority. Satluj Jal Vidyut Nigam Limited (SJVNL) has its own tale of woes to narrate in the context of Jammu and Kashmir Power Development Department (J&K PDD). Power of PDD J&K for NJPHS was regulated on December 1, 2015.
SJVNL further claims that upon receipt of payment of Rs 161.31 Crore in NJHPS account and on assurance to release further amount of Rs 95 crore in due course of time, power was deregulated on April 10, 2016 but despite making promise, PDD J&K had paid only Rs 62.46 Crores after power deregulation. SJVNL has categorically stated that an amount of Rs 211.67 Crore (combined outstanding of NJHPS & RHPS) is overdue from Power Development Department (PDD) J&K and the same is not being released for reasons best known to the state government.
As per provisions of CERC regulations and terms and conditions of power purchase agreement, beneficiaries are required to submit a Letter of Credit (LC) before start of the relevant financial year, but J&K is yet to submit its LC. Request letters for submission of LC for 2016-17 were sent to all beneficiaries including Jammu and Kashmir to open the LCs on priority.
But despite numerous reminders, J&K has not yet opened Letter of Credit since May 2011 whereas as per the Power Purchase Agreement they have to submit a confirmed, revolving, irrevocable Letter of Credit in favour of SJVN for an amount equivalent to 105% of their average monthly billing of preceding 12 months with appropriate bank as mutually acceptable to parties.
With this state of power purchase in J&K, one expects entire power development department to work overtime so that state tides over the power deficit and is not forced to spend several hundred crores in buying power from central power providers. |
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