Amid controversy over the legality of hydroelectric projects run by NHPC in Jammu and Kashmir, ABL Srivastava, the company’s director finance has said that there is no illegality involved in it whatsoever.
In an interview to CNBC-TV18, Srivastava said that if any political party rakes up the issue of taking away projects from NHPC, the company will take the matter to the power ministry.
NHPC and J&K government have locked horns over several projects which the former is operating in the state.
While the government says that the company has no right over any projects of which the agreement has expired long back and hence ownership of projects is that of the state, NHPC argues that the projects are in accordance the agreement of Transfer of Property Act and in line with the Central government mandate.
Srivastava pointed out that due to the controversy, capacities and projects have been stalled and this is an area of concern for the company. Another concern in the low rate of return on equity NHPC has requested the Central Electricity Regulatory Commission (CERC) to review return on equity (ROE), he added.
“As far as National Hydroelectric Power Corporation (NHPC) and the ministry of power is concerned, there is no question of returning back any project to the J&K as of now. Few days back also, it was clarified that we have formed a joint venture (JV) with the J&K government where we are having 49 percent stake , 49 percent stake is with the J&K government, J&K Power Development Corporation (J&KPDC) and the remaining 2 percent is with PTC,” he said.
He added that none of the projects that NHPC is holding is going back to the J&K government. “That is the stand, of the government of India and the NHPC till date. In case, the issue is again raised by the J&K government, we will be putting our points to the ministry of power for taking appropriate decision and taking into consideration the interest of NHPC too,” concluded Srivastava.