Thursday, March 6, 2014

GVK's PPA with UP not in interest of Uttarakhand

The GVK group may have commissioned its 330 Mw Srinagar hydel project on Alakananda river in Uttarakhand. But experts said the power purchase agreement (PPA) between GVK and Uttar Pradesh in not in the interest of Uttarakhand which is facing acute power shortage.

Under the PPA, GVK will sell 88% of the power from Srinagar project to Uttar Pradesh and provide only 12% of free power to Uttarakhand.

On the other hand, scores of hydel projects which are under construction in the hill state have been facing roadblocks on environmental grounds. “Yes it is true that Uttarakhand lost a big opportunity of getting full power from the Srinagar hydel project at a time when new projects are not being constructed owing to environmental concerns,” said B C K Mishra, a former Director of UJVN Ltd, a state-run power generation company.

JP Group had also signed a similar PPA with Uttar Pradesh on its 400 Mw Vishnuprayag project in Chamoli district of the hill state.

Uttarakhand which purchases 11500 MU of power worth Rs 3,000 crore had put its seal of approval on the two PPAs at a time when the hill state was power surplus 10-12 years ago. But after the rapid industrialization, the demand of the power grew fast reaching 32-36 MU per day from 5-6 MU in 2003-04.

And after Uttar Pradesh Chief Minister Akhilesh Yadav inaugurated the GVK project from Lucknow, Chief Minister Harish Rawat felt bad and sought a report from top government officials on the company’s decision to get the project launched by the neighbouring CM. But Rawat said he would also see what can be done as far as the PPAs were concerned. “This project is facing some problem. Nevertheless, we can see what we can do,” said Rawat when asked to comment on the PPA.

However, top officials in the power department said any decision to review the PPAs at this juncture would not be easy. “The PPAs were signed when we were not facing any power shortage. But now, if we have to review these PPAs, we have to give a valid reason as to why we want to change them,” said a top government official.

However, the officials said it all depend on how the new Chief Minister takes a final call on the issue. “All the chief ministers in the past did not raise any issue against GVK or JP group. But If the new Chief Minister wants to make any changes, he is free to do that,” said another top government official.

BS

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