IWT – India faces a real challenge to harness the Hydropower potential of J & K waters

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]D[/dropcap]iplomatic relations between the two nuclear neighbours – India and Pakistan – are on verge of collapse especially after India announced its decision to boycott the SAARC meeting in Islamabad.

Whatever may be the outcome of the fresh review one thing is quite clear WATER is emerging as the most ‘lethal’ weapon and the force multiplier triggering unrest in the region.

The latest diplomatic offensive launched by India came close on the heels of reviewing the Indus Water Treaty (IWT) of 1960.

Under the IWT, India has control over three eastern rivers – Beas, Ravi and Sutlej, all flowing from Punjab while Pakistan controls the western rivers Indus, Chenab and Jhelum which flow from Jammu and Kashmir.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he aim behind carrying out a fresh review of IWT by the Narendra Modi led BJP govt at the centre is to renegotiate terms and conditions of the treaty and explore the possibility as to how best India can maximise use of river waters flowing through the trouble torn state of Jammu and Kashmir.

Whatever may be the outcome of the fresh review one thing is quite clear WATER is emerging as the most ‘lethal’ weapon and the force multiplier triggering unrest in the region.

The purpose was to delay the construction of the project and trigger cost escalation and exploit the inherent contradictions between the Centre/ State relationship.

Both the sides have already started measuring their swords and want to take advantage of striking first.

On its part Pakistan is deliberately provoking India to trigger more unrest in the region and drag its feet in the muddy waters and delay the implementation of the hydropower projects in the pipeline.

When India was constructing Phase I and Phase II of 450 MW each Baglihar Power Project Pakistan had raised red flag over its design and demanded arbitration by the World Bank monitored expert panel.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he purpose was to delay the construction of the project and trigger cost escalation and exploit the inherent contradictions between the Centre/ State relationship.

A similar strategy is being adopted by the Pakistan in case of three other major hydropower projects both in the State and Central sectors – on rivers falling under the Indus Water Treaty (IWT).

Due to these reasons India has managed to harness just 3,263.46 MW, which is around 19.80 per cent of the identified 16,475 MW potential of the state, so far. As per the Economic Survey Report 2015-16, J&K has vast hydro potential estimated at 20,000 MW out of which only 16,480 MW is identified till date mainly due to resource constraints. This comprises of 11,283 MW in the Chenab basin, 3,084 MW in the Jhelum basin, 500 MW in the Ravi basin and 1,608 MW in the Indus basin.

“Approximately 15 percent of total identified hydropower potential i.e. 2,457.96 MW has been exploited so far and out of which the state sector projects is only 760.46 MW”.

“Out of total power demand of 17,323 million units at present, the power generation from the state-owned power houses is only 2562 million units. Bulk of electricity consumption in the State is by the domestic sector.

Of the identified power potential, nearly 1,211.96 MW has been identified in the state sector from 21 power projects, 2,009 MW in the Central sector from seven projects and 42.5 MW in the private sector from four projects.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he state of Jammu and Kashmir has been demanding a review of the treaty as it deprives it of its rights to use the water of the rivers. J&K Chief Minister Mehbooba Mufti, on Wednesday, while raising the contentious issue once again demanded adequate compensation from the central govt.

According to records of the state assembly, “The 850 MW Rattle project on the Chenab in Kishtwar district was abandoned by the executing agency following a dispute with local residents in the area.”

Several other projects which are waiting to see the light of day include 1,200 MW Sawalkote, 660 MW Kiru, 800 MW Bursar, 390 MW Kirthai-I, 930 MW Kithai-II, 48 MW Lower Kalnai in Kishtwar and 560 MW Kawar.

All these projects are at the basin of the Chenab. The 280-MW Ujh is on the river Ravi in Punjab.

Kishanganga (330 MW) hydroelectric project at Gurez in Bandipora district on the Jhelum, which was announced almost a decade ago, was in the advanced stage of construction, while the detailed project report of the Bursar hydroelectric project (800 MW) in Kishtwar was being prepared.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]A[/dropcap]nother mega project, the 1,000-MW Pakal Dul hydroelectric power project on a tributary of the Chenab in Kishtwar is also hanging in the balance because the Chenab Valley Power Projects Limited, which was to execute the project, had cancelled the tenders in February this year. The tenders were invited in 2011.

Dheeraj Gupta, Commissioner Secretary, Power Development Department, attributed the “inordinate delay” in execution of all mega power projects to “administrative and technical issues”.

“There are several issues which impact the execution of power projects in the state. We have the funding issue apart from the administrative and technical glitches. Besides the long wait for clearance from the IWT. We have recently got clearance for the Kiru power project. We are doing our best to ensure early execution of power projects,” Gupta added.

Investment approval for execution of Pakal Dul has been accorded by Govt. of India on 28th October 2014 at a sanctioned cost of Rs. 8112 crores ($1.22 billion) at March 2013 price level. The project is scheduled to be completed in 66 months.

Pakal Dul is a project of national importance and subordinate debt of Rs 2,500 crores ($377 million) was sanctioned by Government of India. State Government has also exempted the project from Work Contract Tax (WCT) besides exemption of water usage and waiver of 12 per cent free power for 10 years after its commissioning.

The total cost of 624 MW Kiru H.E Project is Rs 4,640 crores ($699 million) and is likely to be completed in 54 months. So even if India start expediting work on these power projects in the state they are likely to be completed in the next five years time assuming no fresh roadblocks are created.
Note:
1. The conversion rate used in this article is 1 USD = 66.39 Rupees.
2. Text in Blue points to additional data on the topic.