Kashmir Inc writes to Prime Minister, demands return of power projects

Srinagar :The Kashmir Chamber of Commerce and Industry (KCC&I) today warned an open revolt by people if all power projects run by National Hydroelectric Power Corporation (NHPC) were not returned back to Jammu and Kashmir.

In an open letter to Prime Minister, the KCC&I said that Jammu and Kashmir was suffering from non-transfer of all power projects which are being presently run by NHPC.
“The Kashmir Valley in particular is fast going back to medieval period with no hope for economic self-sufficiency and development, notwithstanding all the packages announced by your goodself,” KCC&I president Abdul Hamid Punjabi said in the letter.
The open letter seeks Prime Minister’s attention towards a number of unfulfilled promises made by the government of India to people of Kashmir from time to time.
“As per Task Force constituted by your goodself headed by Dr. C.Rangarajan, the report of which was submitted in November, 2006 has recommended transfer of Salal Hydro Power Project to J&K State,”KCC&I said.
The Task Force had analyzed two aspects, the KCC&I said and it include compensation to NHPC which was fixed at 875 crores as the estimated fair value of the project in the year 2006 and the existing beneficiary States which will need to be compensated for loss suffered on account of purchase of power at higher rates which was estimated to 2862 crores.
“This was based on argument by J&K to compensate Indus Water Treaty losses and was suggested by the Task Force to be compensated through Central Assistance,” KCC&I said.
The apex trade body of Kashmir said that because of Indus Water Treaty, the green revolution in Punjab was possible only due to lopsided agreement at the cost of J&K.
“The KCC&I demand the return of not only Salal but Dulhasti as well as Uri projects back to the J&K.
The trade body has even opposed the “discriminatory joint venture (Chenab Valley Power Development Corporation) which has not taken care of the interests of J&K State where it has not even a clause for transfer of these projects to State after a period which is applicable for even private sector projects in the Power Sector under the Scheme of BOOT Agreement.”
“The KCC&I had demanded that the Prime Minister’s Package of Rs.24000 crores out of which 18000 crores was meant for Power Projects but unfortunately given to Central Agency (NHPC) for implementation.
Although KCC&I had demanded 18000 crores to be given to State for taking care of equity in all the projects for taping 20000 MWZ Hydro Electric Power Potential in State.”
KCC&I said that senior cabinet minister for Irrigation and Flood Control, Taj Mohi-ud-Din has publically admitted that the Agreements between NHPC and State Government were missing from the records of the State as such the NHPC was illegally operating all the projects in our State.
The trade body demanded government of India to initiate the process of return of all projects set up by Central Agency NHPC (wholly owned by Government of India) previously which have already paid back their capital with the residual price as calculated by Dr. C. Rangarajan in case of Salal to the tune of Rs.860 crores in 2006 and accordingly calculated for other projects as an interim compensation for Indus Water Treaty to be compensated through Central assistance.
“The KCC&I also wants to bring to your kind notice if all the State resources are not returned back to the State. Government of India may have to confront open revolt from general public especially Trade,
Commerce and Industry Fraternity of J&K so that they can take back these resources.” (KMW News)