JAMMU: Regarding the false information about Ratle Power Projects that has appeared in a number of newspapers and other media outlets, the following is a point-by-point rebuttal complete with statistics: Both the State and Central sectors of the Union Territory (UT) of Jammu & Kashmir are developing hydropower projects. Eleventy million of the 3500 MW installed generation capacity now in use comes from plants owned by UT, which include the 110 MW Lower Jehlum, 110 MW Upper Sindh, and 900 MW Baglihar projects. The remaining 2300 MW comes from central sector plants, with important ones being Salal, Dul-Hasti, Uri, and Kishanganga. Because of a drop in river levels, power plants in J&K, both in the central and state sectors, can only produce a maximum of 600 MW during the winter months compared to their rated capacity of 3500 MW. But in winter, when demand peaks at 3200 MW, it’s clear that hydroelectric power facilities are unable to meet J&K’s electricity needs. The majority of the electricity generated by J&K’s own power plants comes from the 900 MW-producing Baghliar Hydro Electric Project (BHEP).A total of 200–250 MW are produced by other locally owned power plants, including as Upper Sindh, Lower Jehlum, Chennani, etc. Through UT’s own producing plants, this amounts to about 1100–1140 MW, with a winter decrease to about 200 MW. Throughout the winter, Central Generating Stations (CGS) both inside and outside of J&K provide the remaining power needed. A significant portion of the 1140 MW installed capacity in the UT sector—roughly 1030 MW, or 88% of the total capacity—is used in J&K. The remaining 150 MW is sold outside of J&K in accordance with agreements made in 2009—first through PTC and then bilaterally with Haryana. The Government of India has set Renewable Purchase Obligation (RPO) targets, making it mandatory for every State/UT to procure some quantum of hydro and solar power to meet a proportion of power demand. J&K, being a hydro-rich state, has to rely on thermal power, particularly during winters, to meet the base load demand. As such arrangements are being made to bank hydro with other states in exchange of thermal power whenever there is surplus situation. Over the last four years, J&K has not signed any Power Purchase Agreements (PPAs) for selling power outside J&K from its power houses; the same quantum has been maintained as per previous PPAs. In contrast, new PPAs have been signed to procure power to the tune of 3000 MW for J&K, including 900 MW of hydro from under construction Joint Venture (JV) projects namely Pakal Dul, Ratle, Kiru and Kwarof Chenab Valley Power Projects(CVPP) and 1600 MW of solar power from different CPSUs at a nominal price in2023. Recently, UT Administrative Council has accorded procurement of 500 MW of firm power from thermal generators for which the PPA signing is in process. This doubles the capacity/availability of power to J&K in the coming years. As regards to under construction JV projects of CVPP (with 51% stakes held by NHPC and 49% by J&K Government ), the projects are being developed through Debt-Equity modelin the ratio of 70:30 at total cost of 22200 Cr. J&K’s equity contribution comes as grants from the Ministry of Home Affairs (MHA), while the debt portion is secured through loans from banks. For raising the necessary loans its essential for the CVPP to execute advance PPAs for selling power post-commissioning of the projects. The tariff for the sale of power is assessed through established procedures and determined by the Central Electricity Regulatory Commission (CERC). The tariff of the said CVPP projects ranges between Rs. 3.92 to 4.64 per unit. J&K’s has signed PPAs for 900 MWs of power from the said projects, considering the additional requirement of Hydro-based power in the existing power portfolio and the pricing, while for the remaining quantum, the CVPP has signed PPAs with other States. 2. In terms of tariff charges, Jammu and Kashmir offers one of the lowest tariff rates to its consumers in various categories, underscoring its commitment to providing affordable electricity to its residents. During the current financial year, the electricity duty on the power has also been withdrawn. 3. One significant challenge is that only 55% of consumers have electricity meters installed at their houses, while power consumption often exceeds the agreed loads by the consumers. It is pertinent to mention here that the Indian Electricity Act mandates the supply of power through meters only. Therefore, the department encourages consumers to install meters at their residences, pay based on consumption, and avoid flat-rate billing.
