Legal battle looms as govt decides to take over 3 SJVN hydel projects
Sutlej Jal Vidyut Nigam (SJVN) is bracing up for a long legal battle following the state government’s decision to take over three hydel power projects it is constructing. “The possibility of any mutual understanding has ended with the government’s decision to take over the projects. Now, the matter will be decided in court,” said SJVN Director (Personnel) Ajay Sharma.
On Saturday, the Cabinet had approved the takeover of the 382 MW Sunni, 210 MW Luhri Stage-I and 66 MW Dhaulasidh hydroelectric projects, which had been allotted to SJVN by the previous BJP government in the state.
The government has also decided to take back 500 MW Dugar and 180 MW Baira Suil hydroelectric projects allotted to NHPC.
The government took the deal-breaking decision following unsuccessful deliberations between the stakeholders to sign terms and conditions afresh for implementing these projects.
The Sukhvinder Singh Sukhu government is demanding free power share at the rate of 12, 18 and 30 per cent and return of the project after 40 years. SJVN, however, wants to implement the project on the terms and conditions agreed upon with the Jai Ram Thakur government.
The previous BJP government gave SJVN a waiver in the free power share, especially in the first 12 years, and it was not required to return the projects after 40 years, unlike private power producers in the state.
As for the relaxation given by the previous government, Sharma said the projects wouldn’t have taken off at all without these relaxations. “The Government of India gives approval for investment only in those hydel power projects where the tariff is around Rs 5.50 per unit. The tariff at Luhri and Dhaulasidh was coming to around Rs 8 to Rs 8.50 per unit. Since it wasn’t viable for us at that tariff, we sought relaxation in free power share from the previous government, which brought the tariff down to Rs 5.50 to Rs 5.75,” said Sharma.
The other factor that led to the standoff between the state government and SJVN is the latter starting work on these projects without signing the Implementation Agreement. According to Sharma, SJVN had arrived at a broad understanding with the previous government for implementing these projects. “We were in the final stages of signing the IA ahead of the Assembly elections in 2022. Due to the elections, it could not be signed. The government changed and the new government refused to honour the terms and conditions agreed upon by the previous government,” said Sharma.
Calling the state government’s decision unfortunate, Sharma said SJVN would continue the construction work of the projects at the same pace. “We can’t afford to stop work even for a few days as it will lead to cost overruns and expensive power,” said Sharma. “We’ve completed nearly 60 per cent work on these three projects. In case we end up handing over these projects back to the state government, it will be very difficult for any other entity to complete the project from this stage,” said Sharma.
Himachal Tribune