The Jammu and Kashmir government on Tuesday informed the Assembly that the Sewa-II Hydropower Project in Kathua district has generated revenue of ₹3,674 crore since its commissioning in July 2010. The government also stated that no direct expenditure on local area development has been met from this revenue.
In a written reply to a question by MLA Dr. Rameshwar Singh, Chief Minister Omar Abdullah said that the 120-megawatt Sewa-II Hydro Electric Project, located in the Mashka area of Kathua, is being operated and maintained by National Hydroelectric Power Corporation Limited (NHPC).
He informed the House that since July 2010, NHPC has generated ₹3,674 crore from the Sewa-II project and has paid ₹32 crore towards the Local Area Development Fund (LADF).
The Chief Minister clarified that out of the total revenue generated from the project, “nil” amount has been utilised specifically for local area development. He added that infrastructural development works in the region are being carried out through the Union Territory’s capital expenditure budget.
He further stated that the one per cent contribution towards the LADF and the 12 per cent free power allocation provided by NHPC are being utilised to offset the Union Territory’s power purchase costs, thereby ensuring electricity supply to consumers at reasonable rates.
Overall, Jammu and Kashmir Power Corporation Limited receives 13 per cent free power, including the LADF component, from the Sewa-II Hydropower Project, the Chief Minister said.
