SRINAGAR: Amidst increasing political opposition to the recent power purchase agreement between Ratle Hydro Electric Power Corporation Ltd and J&K Power Development Corporation with Rajasthan Urja Vikas and IT Services Ltd for off take of power for a period of 40 years, CPI(M) leader Mohamad Yousuf Tarigami today shot a letter to Union Power Minister, stating that the agreement is both unjustified and against the development of J&K economy.
The Ratle Hydro Electric Power Corporation Ltd (RHPCL) is a joint venture company of state-owned NHPC Ltd and Jammu and Kashmir State Power Development Corporation (JKSPDC).
According to an agreement signed on January 3, 2023 for off-take of power for 40 years from the commercial operation date of the project and as per power allocation to be notified by the Ministry of Power. As per this agreement, RHPCL has entered into Power Purchase Agreement (PPA) with Rajasthan Urja Vikas and IT Services Ltd, for offtake of power generated from 850 MW Ratle Hydroelectric Project in Kishtwar.
Demand for withdrawal of agreement
In a statement, Tarigami said that the decision of the J&K administration is bound to make the people of Jammu and Kashmir suffer and needs to be withdrawn.
“The agreement comes at a time when J&K is going through severe electricity shortage. Due to the unbearable hike in tariffs, the anxieties of the people have been deepened. Instead of compensating the losses, our resources are handed over to other states,” Tarigami said in a statement while appending a detailed letter submitted to the power minister, Raj Kumar Singh.
In his letter, Tarigami stated that Jammu and Kashmir is entitled to separate treatment/special dispensation, that is at least 40 per cent free power rather than the present 10 per cent by the producing agency. “The Central Government must compensate Jammu and Kashmir, on a perennial basis, 400 MWs of power out of the central pool to compensate for the opportunity cost (loss of overall development due to IWT constraint since 1960),” he wrote, adding that J&K must be compensated as per its entitlement to overcome shortages of power in the lean period.
The letter reminded the Union government of the Task Force created under the Prime Minister in 2004, which recommended transfer of Dul-Hasti project 1020MW Burser Storage Scheme to Jammu and Kashmir to “augment power supply and make power accessible at a low tariff.”
Regarding the Ratle project agreement, Tarigami said that the state is already facing a deficit of power generation and this leaves no scope for entering into off-take agreements with other states.
“The economy suffers due to power scarcity around the year, MSME sector gets a few working days due to a shortage of power, the household domestic handicraft industry suffers, and therefore, Jammu and Kashmir cannot afford to sell power out of its HEPs to the outside,” he said.
Opposition to Ratle agreement
Earlier, last week, several political parties had criticized the agreement and demanded its withdrawal.
National Conference stated that the agreement had evoked a sense of betrayal among the masses and generated a fear that their resources are being bartered away.
“Normally Power Purchase Agreements usually last for a maximum of 20 years. However, in this case they are signing it for 40 years at a pre negotiated price which is also unknown,” NC said.
Its spokesperson Imran Nabi Dar, said in a statement, “the agreement has stirred the hornet’s nest as the terms and conditions on the face of it are seemingly to the disadvantage of J&K.” He questioned that while normally power purchase agreements are for a maximum of 20 years, in this case it has been signed for 40 years at an unknown pre-negotiated price.
“It makes no sense that at a time when J&K is grappling with electricity crisis, the government is selling out electricity to other states,” Dar said.
Omar describes agreement as “loot”
Addressing a press conference National Conference Vice President Omar Abdullah denounced the power agreement it as a “loot” of the territory.
He stated that such an arrangement, directing the generation from hydroelectric power projects to another region, would not be tolerated. “While we are chosen first for the installation of smart meters, our hydroelectric power projects’ generation is directed to Rajasthan. We will not allow this, even if it requires taking the issue to the Indian Supreme Court,” he added.
PDP chief Mehbooba Mufti said that transferring the Ratle Power Project would “rob” the people of Jammu and Kashmir at a time when J&K is facing a severe power crisis.
“At a time when J&K is facing a severe power crisis never witnessed before our hydroelectric resources are being outsourced to other states. Yet another decision that will rob people of basic amenities to collectively punish the inhabitants of J&K,” she said.
Apni Party President Syed Mohammad Altaf Bukhari urged the Jammu and Kashmir administration to come clear on facts regarding leasing out of electricity from Ratle Power Project Kishtwar to Rajasthan.
Ratle Power Purchase Agreement
The agreement was signed in Jaipur earlier on January 3. Ratle Hydro Electric Power Corporation Limited (RHPCL) has entered into a Power Purchase Agreement (PPA) with Rajasthan Urja Vikas and IT Services Limited for the off-take of power generated from the 850 MW Ratle Hydroelectric Project in the Jammu district of Kishtwar.
The news made headlines after the RHPCL announced the agreement on X on January 3, 2023.
The Jammu and Kashmir administration, however, was silent till the news triggered criticism by politicians of all hues. On January 13, it issued a clarification.
An official handout said, “Over the last four years, J&K has not signed any Power Purchase Agreements (PPAs) for selling power outside J&K from its power houses; the same quantum has been maintained as per previous PPAs. In contrast, new PPAs have been signed to procure power to the tune of 3000 MW for J&K, including 900 MW of hydro from under construction Joint Venture (JV) projects namely Pakal Dul, Ratle, Kiru and Kwar of Chenab Valley Power Projects (CVPP) and 1600 MW of solar power from different CPSUs at a nominal price in 2023.”
It added, “For raising the necessary loans its essential for the CVPP to execute advance PPAs for selling power post-commissioning of the projects.”
“The tariff of the said CVPP projects ranges between Rs. 3.92 to 4.64 per unit. J&K has signed PPAs for 900 MWs of power from the said projects, considering the additional requirement of Hydro-based power in the existing power portfolio and the pricing, while for the remaining quantum, the CVPP has signed PPAs with other States,” it further said.
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