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No royalty taken for NHPC projs running in J&K

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Press Trust of India Srinagar

The Jammu and Kashmir Government today said it was not taking any royalty from the National Hyrdoelectric Power Corporation (NHPC) for its power projects in the state, but had signed a memorandum of understanding (MoU) as equity partners.

"Let me clarify this that we are not taking any royalty from NHPC. We have signed an memorandum of understanding (MoU) as equity partners and get 12 per cent share of the power generated from these projects," Public Health Engineering, Irrigation and Flood Control Minister Taj Mohiuddin said in the Legislative Council.

Mohiuddin was replying to the points raised by members of the Upper House during a discussion on the New Water Resources Management Bill that envisages levying charges on the usage of water, including the resource used for power generation purposes.

 

Asserting that even the State Government will be charged for its share of water used in power generation, the Minister said the Bill was in response to perpetual criticism of the state that it was not making efforts for resource mobilisation.

Admitting that mistakes had been made in the past while, issuing licences for power projects without any specific agreements, Mohiuddin said the new bill will ensure that all the required documents are submitted to the regulatory authority before any fresh licenses are issued.

Referring to the MoU signed between the Centre and the State Government in 2000, the minister said he was one of the critics of the agreement, as he had not properly read it.

"After going through it (agreement), there is a specific provision for return of these projects, which have been handed over to NHPC for operation and management, to the state," he added.

Mohiuddin said the state Government led by Chief Minister Omar Abdullah had begun efforts to work out modalities for return of the power projects to the state as provided in the MoU.

The Bill was passed by the State Assembly by a voice vote, after it was introduced for consideration and passed by Mohiuddin on October 09.

It will be referred to the Governor for his assent, after which it will become an Act.

"As per our estimates, the state would generate Rs 850
crore annually, even if only two paise per cubic tonne of water is charged from the power houses," the minister had told the assembly.

He said the Bill was full-proof, as it has been framed after consulting top legal and water experts.

Earlier, National Conference MLC Ajay Sadhotra had demanded referring the bill to a Joint House Committee to study it properly so that lacuna, if any, are removed.
    
The bill will consolidate the laws relating to use of water, measurement, construction, control and management of works, with respect to water storage, conservation and protection.
    
It will also control irrigation, water supply, drainage, flood control, improvement in the flow of water and safety and surveillance of dams.
    
The Bill also seeks establishment of State Water Resources Regulatory Authority for regulating water resources, ensuring judicious, equitable and sustainable management, allocation and utilisation of water resources and fixing the rates for water usage.

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First Published: Oct 11 2010 | 3:12 PM IST

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