NHPC takes up delayed projects

NEW DELHI, Sept 21: Two large hydro power projects at Kol and Parbati are being handed over to the National Hydro Power Corporation for i...

NEW DELHI, Sept 21: Two large hydro power projects at Kol and Parbati are being handed over to the National Hydro Power Corporation for implementation. The 800 MW Kol project and the 2,051 Parbati project have been held up because of the problems of finance and equity between the promoter states. The decision to hand over the projects to NHPC was taken at a meeting held by the Union Power Ministry last week at Chandigarh.

Confirming this to the Indian Express, NHPC8217;s CMD Yogendra Prasad said, 8220;We have not received any official letters yet, but these projects will be given to us for implementation. Parbati is expected to be given to us in this week, while Kol will follow soon after.8221;

The Kol dam project located in Bilaspur District was set up in the mid-80s as a partnership between Himachal and Rajasthan. With four units of 200 MW each in the project, the cost was to be shared in the ratio of 75:25. While the initial share of the investment of Rajasthan was Rs 45 crore, it could invest only Rs 1.6crore.

In case of the Rs 6,637 crore Parbati project in Kullu, five states came together to implement it. But the project got held up because Himachal wanted its stake to be increased from five per cent to 25 per cent. While the details of the new arrangement are yet to be finalised, the two projects are expected to see the light of day, once NHPC takes over.

Earlier addressing newspersons, Prasad announced the annual results of NHPC but said that recovery of loans from state electricity boards was a big problem.

More than Rs 5,400 crore of debt has piled up partly because of non-payment by states. Prasad said that NHPC has warned Uttar Pradesh, Jammu amp; Kashmir and other defaulting states to clear their dues failing which the corporation would stop supply of power from November.

NHPC posted a net profit of Rs 299.42 crore in 1997-98, and would raise Rs 8,377 crore from the Government and borrowing to fund its Ninth Plan investments.

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The corporation would borrow a total of over Rs 5,300 crore besidestaking Rs 3,000 crore from the Government towards equity during the next three years, Prasad said.

Uttar Pradesh owes NHPC Rs 575 crore while Haryana owes Rs 356 crore. Jammu and Kashmir is not even paying the current dues despite taking 12 per cent free power from Salal and Uri projects. On payment problems from states, Prasad said the corporation could not cash even a Rs 12 crore cheque issued by Uttar Pradesh authorities in August for lack of funds in the states8217; coffers. NHPC has also submitted a 15-year corporate plan till the year 2012 to the Government for addition of 15,000 MW, Prasad said.