Jammu and Kashmir government on Tuesday informed the Assembly that the Sewa-II hydropower project in Kathua district has generated a revenue of Rs 3,674 crore since its inception in July 2010.
It said no direct expenditure on local area development was met from the said revenue.
In a written reply to a question by MLA Dr Rameshwar Singh, Chief Minister Omar Abdullah said the 120 megawatt Sewa-II Hydro Electric Project in Kathua’s Mashka area is being operated and maintained by National Hydroelectric Power Corporation Limited (NHPC).
He said that since July 2010, the NHPC has generated a revenue of Rs 3,674 crore from the Sewa-II project, and it has paid an amount of Rs 32 crore towards the Local Area Development Fund (LADF).
Abdullah clarified that out of the revenue generated from the project, there has been “nil” utilised specifically on local area development, and the infrastructural development works in the region are being carried out using the Union Territory’s capital expenditure budget.
The 1 per cent contribution towards the LADF and 12 per cent free power allocation by the NHPC are being utilised to meet the Union Territory’s power purchase cost, ensuring supply of electricity to consumers at reasonable rates, the chief minister said.
In total, the Jammu and Kashmir Power Corporation Limited receives 13 per cent free power, including the LADF, from the Sewa-II hydropower project, he said.