Question : FRESH AGREEMENT IN VISHNUPRAYAGA AND SRINAGAR HYDRO-ELECTRIC PROJECT



(a) whether the Government are aware that the fresh agreements are likely to be made in respect of Vishnuprayaga and Srinagar hydro-electric projects of Uttaranchal;

(b) if so, the details thereof;

(c) whether the demand of 12 percent free of cost electricity of Uttar Pradesh has become main hindrance in the implementation of this project;

(d) if so, the action taken by the Union Government to remove this standstill; and

(e) the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )

(a) : Yes, Sir.

(b) : The Vishnuprayag and Srinagar Hydro electric schemes were awarded for implementation in the private sector by the Uttar Pradesh State Electricity Board (UPSEB). Subsequently, consequent to bifurcation of the State of Uttar Pradesh and formation of the new State of Uttaranchal, these schemes now fall in the new State of Uttaranchal though the power to be generated would be supplied to Uttar Pradesh. It is in this context that some of the agreements viz., the Implementation Agreement, Power Purchase Agreement and Escrow Agreement already entered into between the project developers and the UPSEB, may have to be suitably amended.


(c) to (e) : The issue regarding demand of the Government of Uttaranchal for 12% free power from these two hydro electric generation schemes was discussed in a review meeting taken by the Secretary (Power) on 24th June, 2002 with representatives, inter- alia, from the Governments of Uttar Pradesh and Uttaranchal. During the meeting, it was informed by the representatives of Uttar Pradesh that the State Government of Uttar Pradesh is prepared to give 12% free power to Uttaranchal in regard to the Vishnuprayag project, if the transmission network for evacuation of this electricity is allowed to be constructed by Uttar Pradesh. Government of Uttaranchal have subsequently agreed to this proposition. It was also informed by the representative of Government of Uttar Pradesh during the said meeting that they propose to take similar action for the Srinagar project also. The Government of Uttaranchal have recently informed that this (12% free power) is no longer a hindrance in the implementation of these two projects.