Financial boost: Baglihar-II to generate power from August

Ravi Krishnan Khajuria

Tribune News Service

Jammu, February 27

In what could be a big boost to the ailing economy in electricity-starved Jammu and Kashmir, the second phase of 450-MW Baghliar hydroelectric project would start generating power from August this year, but in phases.

“The first turbine of 150 MW will be commissioned in August and the second (150 MW) in September, while the third turbine (150 MW) will start generating electricity from November,” Mehraj Ahmed Kakroo, Managing Director of the Jammu and Kashmir Power Development Corporation (JKPDC), told The Tribune.

Put together, all three units of the 450-MW project would generate 1,302 million units, he informed.

The estimated cost of the second phase (450 MW) of the Baglihar project stands at Rs 3,113. 19 crore.

Kakroo said out of the total generation, 40 per cent would go to the Jammu and Kashmir Power Development Department to meet its requirements within the state and remaining 60 per cent would be sent outside to clear loans availed to raise the project.

“A part of revenue generated from the project will go in for clearing loans,” he said.

“The state government will earn around Rs 1,000 crore as revenue from the project,” he said.

The financial closure of the project had already been achieved with a loan of Rs 2,179.23 crore sanctioned by the Power Finance Corporation (Rs 1,679.23 crore) and J&K Bank (Rs 500 crore), he said.

Kakroo said the run-of-the-river project, which has come over the Chenab in the Chanderkote area of Ramban district, would give a good boost to the state economy.

The Chenab that flows into Pakistan, it may be stated, already has 690-MW Salal hydroelectric power project in Reasi and 390 MW-Dulhasti hydroelectric power project in Kishtwar.

The first phase of the Baglihar project (450 MW) was commissioned in 2008 and the work for the second phase had started in 2012.

Both the phases of 450-MW capacity each have a common reservoir.

The second phase of the state government-owned project has been equipped with sophisticated and advanced equipment from countries like German, Belgium and France.

At the time of the construction of the first phase of the Baglihar project, Pakistan had raised objections to the height of the dam, for which it had approached the World Bank, which in turn had appointed a neutral adjudicator Prof Raymond Lafitte.

In December 2006, Pakistan had recommended to World Bank arbitrator Prof Raymond Lafitte that height of the dam should be decreased to 143 metres from 145 metres. India had subsequently accepted and implemented it in 2007.