Chamber studies J&K power

State's utilisation of hydro power less than 10%

Even though a state like Jammu & Kashmir has a hydropower potential to the tune of 20,000 MW, representing 24 per cent of the country's capacity, the installed capacity, at 1,470 MW, is not even 10 per cent of it.

With the government of India planning to implement 50,000 megawatt hydropower projects by 2012, Jammu & Kashmir is likely to attract a lager pie of these investments.

According to a study, jointly commissioned by YES Bank and the PHD Chamber of Commerce and Industry, on the investment opportunities in Jammu & Kashmir, a public-private partnership framework, along with appropriate risk allocation and structuring, would be able to lure investors to the state.

Suggesting the setting up a nodal agency for facilitating project implementation, the study said a shelf of projects with all necessary approvals and technical studies needed to be created.

The study has cited long gestation period of hydro projects, lack of reliable hydrology data and terrain studies and the absence of a long-term stable investment climate in the valley as the factors that have hindered investments in the hydro power sector in the state.

The study also said the long distance of the state from the large power-consuming states in the western and southern part of the country was another impediment.

"While the issues merit serious consideration, we believe that the projects can be implemented," it said, adding that the significant hydro power potential can be tapped through proper structuring of the project.

With the development of financial markets, more innovative financial instruments available in the market would be able to enhance debt tenors, the study said.

It also said the new insurance products like weather insurance and hydrology insurance would attract the investors to the hydro power sector.

J&K seeks people's help

Under fire for its alleged failure to provide uninterrupted power supply, the Jammu and Kashmir government has sought cooperation of the people to provide adequate electricity to consumers, reports PTI.

"We appeal to people to cooperate with the power development department officials for installation of electronic meters which would ensure 24 hours power supply," Minister of State for Power Javid Mustafa Mir said on the sidelines of a function in the Badgam district of central Kashmir yesterday.

The minister urged people to adopt power reforms, avoid misuse of power and extend support to make the reform measures successful so that the department could provide adequate power supply to consumers.

The residents of srinagar have opposed installation of electronic meters alleging overcharging by the power department.