Alternate mechanism

17/04/2018

Notwithstanding green signal from the arbitrator, the resumption of work on 850 Mega Watt Ratle Hydroelectric Project on River Chenab in Kishtwar district is unlikely in near future as PDP-BJP Coalition Government is still groping in dark over alternate mechanism. Moreover, the asset mapping of the project will begin afresh following objections from the Hyderabad-based GVK Company. During the course of arbitration the arbitrator in the recent past rejected the objections from GVK Company vis-à-vis resumption of work on the project as unfounded and made it clear that arbitration doesn't mean allowing fate of the project to remain hanging for unspecified period. The arbitrator gave green signal to Jammu and Kashmir State Power Development Corporation to go ahead with exploring options for resumption of work on the project while simultaneously cooperating in the arbitration process. Notwithstanding the green signal from the arbitrator, the PDP-BJP Government has yet not started exploring options for resumption of work on the project, which was abandoned by Hyderabad based company nearly four years back citing law and order problems and certain unresolved issues with State Power Development Corporation.
No major discussion has been initiated by the Government on this vital issue so far despite being aware of the fact that a long procedure will have to be followed after working out alternate mechanism to pave the way for resumption of work on the project and it seems that Government has also lost interest in the project which otherwise would go a long way in meeting the electricity requirement of the State. Besides resumption of work, reducing cost of the power project is also one of the major concerns for the Government as the same will have bearing on power generation cost. Keeping in view the prevailing situation nobody in the Power Development Department and J&K SPDC is in a position to specify time-frame for resumption of the work on the project what to talk of its completion. The issue of inordinate delay in resumption of work on the project of immense importance was also raised by some legislators in both the Houses of State Legislature during the Budget Session concluded in the month of February this year but there was no satisfactory response from the Government, which had simply stated that matter was under arbitration. Ratle Hydro Electric Project, a run of the river scheme, was the first Hydro Electric Project in the country which was awarded on tariff based international competitive bidding process for development on Built-Own-Operate-Transfer (BOOT) basis for a period of 35 years. The project was proposed to be completed by February this year but because of dispute between GVK Company and JKSPDC its fate is still hanging in balance.

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