Srinagar, Nov 26: What is it that actually hampers the optimal harnessing of hydropower in Jammu and Kashmir? The question has triggered suspense among the observers and experts, given the giant hydropower potential that the state has and the way its exploitation can help in the economic betterment of the state.
According to sources, “faulty planning” and “visionless execution” are the prime reasons for the failure of Jammu and Kashmir to harness the hydropower potential of 25,000 Megawatts for the economic uplift of the state.
“The availability of adequate finances has remained one of the biggest constraints in harnessing the hydropower potential as the state government has not been able to raise enough funds for the identified projects,” top sources, well-versed with the power sector, told Greater Kashmir.
They said almost all the implemented projects in the state sector except Baghliar are the small Hydroelectric Projects (HEPs) having suffered huge time and cost overruns.
“Lack of expertise and will for arranging funds from banks, non-banking financial companies, international agencies like Asian Development Bank and World Bank is therefore a major impediment in the way of hydropower exploitation,” they said.
Sources said the state was not making any effort in exploring the ‘ways and means’ of generating finances for the hydropower exploitation. This, they said, is notwithstanding the potential that the hydropower exploitation has with regard to economic development of the state.
According to experts, after meeting the state’s domestic, industrial, agricultural and other demands which as of now is about 2000 MW, the balance power can be exported and the earnings out of such sale will be many times more than the annual budget of the state.
“The demand of energy continuously goes on increasing year after year. If the power potential is fully exploited, the state would be in a position to meet its own demand and even bail out Central government and neighbouring states by providing the surplus energy and inter alia generate huge earnings for the state that would be utilized for economic and human development,” they assert.
According to sources, even the grant of Rs 25000 crores for hydropower development—committed under the much-hyped Prime Minister’s Reconstruction Program—has proved a ‘damp squib’ as much of it is to be routed through the National Hydroelectric Power Corporation (NHPC) for the development of hydropower in the Central Sector where the state is entitled to 10 percent share only.
‘MASTER PLAN MUST’
According to experts, Jammu and Kashmir is in desperate need of a Master Plan with regard to hydropower exploitation. “We must have a Master Plan which will include a roadmap for harnessing the hydropower potential in the state,” said Dr Shakil Romshoo, the Coordinator of the Energy Research Institute at the University of Kashmir.
He said: “The successful operation of the Baglihar Phase-1 in the state sector, with annual revenue of about 1100 crores, is an important success story that needs to be emulated for other power projects planned in the state. Imagine the situation when the state will be able to harness even 25% of its identified potential. The expenditure of the bulk of our state plan on the purchase of power holds back the development of other sectors in the state. It is therefore practically working as a wheel jammer of the state economy.”
Dr Romshoo said for putting in place a modest target of harnessing additional 3000 MW capacity by the end of 12th five year plan, an investment of Rs 30,000 crores will have to be mobilized over next eight years by the state directly or indirectly. “This is a huge challenge for the political leadership of the state and for effectively meeting this huge fund requirement, we need to explore unconventional sources of investment and funding,” Romshoo told Greater Kashmir.
He said that the University of Kashmir is soon coming up with a detailed scientific report that provides holistic information and opinion on hydropower development issues and is expected to be a valuable guide to enable policy and investment decisions for the sustainable development of the energy sector in Jammu and Kashmir.
THE POTENTIAL
According to officials, the energy resourceful state needs a vision to harness the hydropower potential. “Despite huge resource base in the form of abundant land and water resources, Jammu and Kashmir is one of the poorest states in the country according to the state GDP figures,” said an official in the State Power Development Corporation, insisting not to be named. “Of all the resources that the nature has bestowed us, power (particularly hydropower) is the only source which would ensure sustainable and a solid foundation of the state economy. Jammu and Kashmir is bestowed with a huge untapped hydro power potential. With this huge potential, the power sector should form the back bone of our economy.”
An independent assessment has revealed that Jammu and Kashmir’s hydropower potential is 25,000 megawatts, much higher than the state government’s estimated figure of 16000 to 20,000 megawatts.
Jammu and Kashmir State Power Development Corporation (JKSPDC) has assessed the hydropower potential of the state at 20, 000 MW and identified about 16000 MWs for the four rivers in the state: Chenab (10853.81 MW), Jhelum (3141.30 MW), Indus (1598.70 MW) and Ravi (417.00 MW).
A team of researchers from the University of Kashmir have, however, reassessed the hydropower potential, putting the figure at over 25,000 MW for the power-starved state.
The assessment reveals that the JKSPDC has “underestimated” the hydropower potential, particularly that of Indus basin.
A WAY OUT
Experts say that the problems of finances for the Hydropower development could be partly overcome by thinking of the novel ways for financial instruments like stock market and Clean Development Mechanism (CDM).
“Reliance power, Tata Power and JP Hydro are important examples of raising money for hydropower development from the capital markets,” said Dr Romshoo.
THE JKSPDC FACTOR
The JKSPDC is the state’s 100 percent owned and managed enterprise with the mandate to develop the hydro electrical resources gainfully. The organization has been in existence from last 25 years now.
According to officials, the organization has been able to complete some of its projects including the prestigious project 450 MW Baghliar-I, which has become additional assets for the state organization. “This Corporation can therefore be expected to be able to be a front runner to harness the hydropower potential of the state. The state should strengthen, promote and use it as an umbrella agency to harness hydropower of the state in a time bound manner,” said the JKSPDC official. “It will be able to raise money from various sources for hydropower development.”
‘WE ARE AT IT’
The JKSPDC officials said they were ‘conscious’ of the importance of hydropower to Jammu and Kashmir. “Prior to 2004, the funding agencies were a bit reluctant to fund the power projects in the state for many reasons. But the scenario has changed after the success of Baghliar power project,” said a senior official in the Corporation, insisting not to be named.
“After 2004, we got some support from Government of India and the state government, which led to commissioning of the first phase of Baghliar. This project gave boost to state PDC to move ahead in further exploitation of hydropower.”
The official said they were contemplating a “multi-pronged strategy” in developing more power projects in the state and central sector. “We are doing some projects in the state sector which are progressing at different stages,” the official said. “Seven projects are being developed by the NHPC. One of them been commissioned. Two have not been touched yet. The work on four projects is on.”
The official said: “We have some projects for development under the private sector also. Recently we have contemplated development of 690 MW Rattle Power Project on BOOT basis, wherein the projects would be reverted back to the state after 35 years. So we are pretty comfortable with the lending institutions now. They have reposed trust in us and declared the JKPDC as a credible agency. So we are at it (hydropower exploitation).
The official said they would certainly consult the University of Kashmir’s power scenario document, once it is out. “We will certainly take help from it,” the official said.
http://www.greaterkashmir.com/news/2010/Nov/27/lopsided-planning-myopic-vision-mar-hydropower-sector-47.asp
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