New Power Projects: NHPC Informs SEBI, A Clause In Ratle MoU Deleted  

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by Tahir Bhat

SRINAGAR: A day after Lt Governor Manoj Sinha’s administration signed two MoUs with the NHPC, the hydropower corporation has intimated SEBI about the development, It has added some information that was not available in Jammu and Kashmir on Sunday.

Chenab Basin Projects

Listed companies under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, are supposed to inform SEBI about any agreement they get in. The NHPC has sent two letters to SEBI. In one, it has mentioned about the MoU under which it will be implementing Kirthai-II (930 MW), Sawalkot (1856 MW), Uri-I (Stage-II) (240MW), Dulhasti-II 258 MW in Jammu and Kashmir. Another letter pertains to the Ratle power project.

NHPC Investing Rs 35K Cr To Set Up 5 Power Projects In JK, Will Return To PDC 40 Years Later

Barring Uri-I’s stage 2, all the projects are on Chenab basin and fall within the districts of Ramban, Kishtwar and Doda.

“The 930 MW Kirthai-II project shall be executed by Chenab Valley Power Projects Private Ltd (A Joint Venture Company of NHPC Limited, JKSPDCL and PTC India Ltd), on the same terms and conditions as have been agreed for Pakaldul, Kiru and Kwar HEPs,” the communication sent to the SEBI said.

BOOT Basis

On the execution of Sawalkot (1856 MW), Uri-I (Stage-II) (240MW), Dulhasti (Stage-II) (258 MW), the communication said that these projects “shall be executed by NHPC on BOOT basis for a period of 40 years”. Later, these projects will be “handed over back to Govt. of Jammu and Kashmir after 40 years of commercial operation with specified generation capacity and free from all encumbrances.”

NHPC Limited and JKSPDCL, the communication said shall also explore “the possibility of developing the renewable energy potential of J&K including (but not limited to) solar, wind and small hydro projects either by expanding the scope of existing Joint Venture Companies or by creating a new Joint Venture Company”. The detailed modalities shall be mutually worked out by the parties. It added: “NHPC Limited shall help in capacity building of engineers and staff of J&K with special attention to staff from POD and JKSPDCL. This shall include but not be limited to trainings, site and exposure visits and short and long term deputations of J&K engineers and staff to NHPC Limited.”

Altering Ratle

NHPC, it further added, shall support POD and its unbundled corporations and JKSPDCL with assistance and consultancy in Project Management (PMC) and monitoring, and related aspects including power trading.

Ratle Project

Another communication is exclusively about the Ratle project. It actually is a follow-up communication. “In continuation to our earlier letter of even number dated 04.02.2019, it is to inform that NHPC Limited has signed a Supplementary Memorandum of Understanding (MoU) with Jammu and Kashmir State Power Development Corporation Limited (JKSPDCL) and Power Development Department, Govt. of UT of Jammu & Kashmir on 03.01.2021 for implementation of Ratle HE Project (850 MW) in Union Territory of Jammu & Kashmir through a Joint Venture Company (JVC),” the communication said. “In the supplementary MoU, the clause of MoU dated 03.02.2019 regarding the purchase of NHPCs equity by JKSPDCL from the end of the 5th year after the date of commissioning over 15 years through equal instalments have been deleted. Now, the share of NHPC Limited in the Joint Venture Company shall not be brought below 51 % and share of JKSPDCL shall not be brought below 49%.”

Powerful Decisions

In its communication to SEBI on February 4, 2019, NHPC had revealed the details of the making of a Joint Venture company for the implementation of the 850-MW Ratle project. The MoU to this effect was signed on February 3, 2019. The equity participation of the unnamed JV “shall initially be in the ratio of 51:49”.  It had informed the SEBI that “the equity of NHPC shall be purchased at its book value by JKSPDC from the end of the fifth year after the date of commissioning over 15 years through equal instalments.” This clause has been deleted now.

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