In past five years Jammu and Kashmir has received substantial revenue of Rs 5537 crores from NHPC projects operating in the Union Territory.
The government in a reply to question tabled by MLA Shakti Raj Parihar said that the power generated from the hydropower projects owned and operated by JKPDCL Government of J&K, in accordance with the applicable power allocation arrangements.
The government informed the house that “During the last five financial years, JKPDCL has sold a total of 19,222.21 Million Units (MU) of electricity to the UT of Jammu & Kashmir at an average selling price of Rs. 2.033 per unit.”
“However, JKPDCL has paid an amount of Rs. 745.151 crore to the Government of Jammu & Kashmir on account of Water Usage Charges (WUC) during the last five financial years,” the government said.
It also said, “The UT of Jammu and Kashmir has received substantial revenue from NHPC projects over the last five financial years, totalling Rs 3582.06 Crore in Water Usage Charges and Rs 1955.26 Crore in the monetised value of 12 percent free power plus 1 percent LADF, across its various power stations with a combined installed capacity of 2250 MW.”
The house was further informed that apart from the direct financial benefits accruing to the Union Territory of Jammu & Kashmir in the form of free power, water usage charges and taxes and duties, hydropower projects also generate substantial indirect economic benefits locally.
“The implementation and operation of such projects create a continuous chain of economic activities, thereby contributing to employment generation, development of local enterprises and strengthening of the ancillary service sector,” the government said.
It also said that the continuous requirement of operation, maintenance, repair and upkeep of hydropower projects generates recurring opportunities for contracting agencies and local service providers.
“A substantial portion of such maintenance and ancillary works, particularly routine, minor and specialised works, is undertaken through contractors and agencies operating in and around the project area, sustained business. opportunities firms and entrepreneurs,” the government informed the house.
It also informed that during the operational phase of a hydropower project, various activities such as housekeeping, security, transportation, equipment handling, support services, routine maintenance and other ancillary operations require engagement of outsourced manpower and service providers.
The government further said that these activities provide regular employment and livelihood opportunities to local residents, including skilled, semi-skilled and unskilled workers.
“Thus, the operation of hydropower projects creates a continuous local economic ecosystem, wherein expenditure on maintenance works, contracts, procurement and outsourced services circulates within the project area and contributes to employment generation, income enhancement and the growth of local businesses and development of skilled manpower for future requirement of up-coming projects,” the government informed.
