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ANNEXURE TO GOVERNMENT ORDER NO.205

J&K STATE HYDROELECTRIC

GOVERNMENT OF JAMMU & KASHMIR

J&K STATE HYD

PROJECTS DEVELOPMENT

Power Development Department

ANNEXURE TO GOVERNMENT ORDER NO.205-PDD of 2011 DATED 07.07.2011

&K STATE HYDROELECTRIC PROJECTS DEVELOPMENT POLICY


STATE HYDROELECTRIC


POLICY 2011

Jammu & Kashmir


PDD of 2011 DATED 07.07.2011

POLICY, 2011


ROELECTRIC




J&K STATE HYDROELECTRIC PROJECTS DEVELOPMENT POLICY, 2011

2

DEFINITIONS/ ABBREVIATIONS

BOOT Build Own Operate & Transfer.

COD Commercial Operation Date. This would mean the date

on which the project begins commercial operation.

Concession Period Concession Period shall mean the period of operation of

the project by the IPP from scheduled COD.

CPSU Central Public Sector Undertaking

CSR Corporate Social Responsibility

CTU Central Transmission Utility.

DPR Detailed Project Report.

EIA Environment Impact Assessment.

EMP Environment Management Plan.

PFR Pre Feasibilty Report.

GoJK Government of Jammu and Kashmir.

GoI Government of India.

HEP Hydro Electric Project.

IA Implementation Agreement.

ICB International Competitive Bidding.

IPP Independent Power Producer.

The IPPs would include any Private Investor such as

Private Ltd. Company/Public Ltd. Company/Public Sector

Undertakings/ Partnership concern/ Sole Proprietary/Co-

operative Society /State Governments other than J&K or

any other Government or non Government entity or their

joint ventures or consortiums.

JKSPDCL Jammu & Kashmir State Power Development Corporation

Limited.

JKSERC J&K State Electricity Regulatory Commission.

JKPDD Jammu & Kashmir Power Development Department.

JV Joint Venture.

LADF Local Area Development Fund.

MoU Memorandum of Understanding.

NHPC National Hydroelectric Power Corporation.

O&M Operation and Maintenance.

PPA Power Purchase Agreement.

R&R Resettlement and Rehabilitation.

RFP Request for Proposal.

RFQ Request for Qualification.



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SHP Small Hydro Power Project.

SDU State Distribution Utility. TEC Techno Economic Clearance.

T&D Transmission and Distribution.

TU Transmission Utility -JKPDD or its successor(s).

UI Unscheduled Interchanges.

ANNEXURE TO GOVERNMENT ORDER NO.205

J&K STATE HYDROELECTRIC

1.0 PREAMBLE

Hydropower is one of the State’s key resources and J&K intends to accelerate

harnessing this potential as an integral part of its economic development.

development of hydro potential in the State is expected to usher in huge

economic benefits in the fo

employment generation.

in efficiencies in transmission and

provide energy at affordable cost

turn into a net energy exporter

Power is the critical infrastructure on which the socio

the country depends. The growth of the economy hinges on the

quality power at competitive rates. Therefore, it is imperative that electricity is

made readily available for growth of infrastructure, economy and overall better

quality of life of the people.

The State is presently

20,000 MWs out of which

tributaries Chenab, Jhelum and Ravi

following chart depicts the identified

0

2000

4000

6000

8000

10000

12000

Jehlum

3560

750.1

Potential Identified


HYDROELECTRIC PROJECTS DEVELOPMENT POLICY


harnessing this potential as an integral part of its economic development.


economic benefits in the form of infrastructure development, industrialization

employment generation. With increase in hydropower generation & improv

transmission and distribution of electricity, J&K

affordable cost for eco-friendly industrial development

a net energy exporter.

critical infrastructure on which the socio-economic development of

ountry depends. The growth of the economy hinges on the

competitive rates. Therefore, it is imperative that electricity is

readily available for growth of infrastructure, economy and overall better

quality of life of the people.

presently assessed to be endowed with hydro power potential of

out of which about 2500 MWs has been harnessed.

tributaries Chenab, Jhelum and Ravi cross the state and in these basins, the

following chart depicts the identified and harnessed potential:-

Jehlum Chenab Indus Ravi

10360

2060

500750.1

1563.8

13.3570

450

90.26

Potential Identified Harnessed Under Construction

PDD of 2011 DATED 07.07.2011

POLICY, 2011

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harnessing this potential as an integral part of its economic development. The


rm of infrastructure development, industrialization and

hydropower generation & improvement

distribution of electricity, J&K aims not only to

friendly industrial development but also

economic development of

ountry depends. The growth of the economy hinges on the availability of

competitive rates. Therefore, it is imperative that electricity is

readily available for growth of infrastructure, economy and overall better

endowed with hydro power potential of

MWs has been harnessed. Indus and its 3

cross the state and in these basins, the

Ravi

500129.00



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The sector-wise breakup of harnessed hydel potential is as under:-

A. Potential - Harnessed and planned

S.No Sector Harnessed

Potential

(MW)

Under execution

(MW)

Planned

(MW)

1 State Sector 758.70 452.76 2566.50

2 Central Sector 1680 659 1020

3 Joint Venture 2120

4 Private(IPP) Sector

(two commissioned

out of 10 awarded

under Phase I)

17.50 760.5 50

Total 2456.20 1870.76 5756.5

B. Projects under Execution

S.No Sector Projects Capacity (MW)

1 State 450 MW BHEP-II,1.26 MW Sanjak,

1.5 MW Pahalgam

452.76

2 Central 45 MW Nimo Bazgo,44 MW

Chutak,240 MW Uri-II, 330 MW

Kishanganga.

659

3 Private (IPP) 690 MW Ratle HEP & 08 Projects

out of 10 awarded to IPPs through

bidding in Phase-I under State

Hydel Policy of 2003.

760.50

Total 1872.26

C. Projects planned for Execution:

S.No Sector Projects Capacity (MW)

1 State 1200 MW Sawalkote, 990 MW

Kirthai-II, 240 MW Kirthai-I, 93

MW New Ganderbal, 37.5 MW

Parnai, 3 MW Hanu & 3 MW Dah

2566.50

2 Central Bursar 1020

3 Joint Venture 600 MW Kiru, 520 MW Kawar &

1000 MW Pakaldull

2120

5 Private/IPP 50 MW Lower Kalnai 50

Total (planned for execution) 5756.5



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In J&K, power generation from projects of 2 MW and above is the responsibility

of the State owned Jammu & Kashmir State Power Development Corporation

Limited (JKSPDCL). Transmission and distribution is directly with the GoJK, i.e.

JKPDD. JKSPDCL was carved out of JKPDD in 1989 and incorporated as a

Company in 1995 with the mandate to plan, execute, operate and maintain all

generating stations including such stations that existed at the time of creation of

the Corporation.

The installed capacity of 21 operational powerhouses of JKSPDCL is 929.70 MW

comprising of 754.70 MW of Hydel Stations with the largest being 450 MW

Baglihar HEP Stage I and 175 MW of Gas turbines. In addition, installed capacity

of the projects under operation with NHPC is 1680 MW from which free power to

the extent of 12 % of the installed capacity is available to the State. The details

of projects under operation in the State are at Annexure I:

At present the unrestricted demand in the State is 2425 MW while suppressed

demand is 1492 MW with scheduled curtailment. Thus there is a deficit of about

933 MW vis-a-vis even the restricted demand. However, this deficit does not

capture the grim situation adequately - the peak demand in the harsh winter

conditions surges up and that is precisely the period when generation from hydel

stations dwindles substantially due to lean discharge in the rivers. Consequently

the State has to rely mainly on the allocation from Central Power Stations and is

often forced to overdraw from the grid, attracting Unscheduled Interchange and

penal rates. Due to purchase of considerable amounts of power from the

northern grid and overdrawals under UI regime, the State suffers substantial

drain of its resources on this account. Harnessing of available hydro potential,

shall therefore, automatically result in improving of power situation in the State.

The demand pattern in the State comprises 35% domestic and 65% non-

domestic consumption. On per capita basis, the State consumes 750 units

compared to 872 units in Himachal Pradesh, 706 units in Uttarakhand, 1506 units

in Punjab, 1208 units in Haryana and 671 units national average. Going by the

projected growth pattern, the power demand in the State is estimated to be

about 2600 MW in 2012-13 and about 5500 MW in 2025-26.

Government of Jammu & Kashmir, vide Govt. Order No. 211-PDD of 2003 dated

9.10.2003,brought out its Hydel Policy to encourage private sector participation

in development of Hydro Projects. Under this policy, ten projects have been

awarded to Independent Power Producers (IPPs), which are at various stages of



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implementation, as summarized Annexure II.

In 2008, the State Government vide order no: 168-PDD of 2008 dated:

25.04.2008 has approved an implementation framework for development of

Hydroelectric Projects outlining the following modes of execution:-

1. Execution of projects as purely state projects with 100% ownership by

JKSPDCL.

2. Execution of large projects through Joint Venture of JKSPDCL with Central

Public Sector Undertakings under Memorandum of Understanding (MoU)

route.

3. Execution of projects through Public Private Partnership (PPP) mode in the

form of Joint Venture of JKSPDCL with private sector for large projects and

selection of JV partner through transparent process.

4. Execution of large projects through independent power Producers (IPP) on

Build, Own, Operate and Transfer (BOOT) basis through international

competitive bidding (ICB).

5. Execution of small projects through Independent Power Producers (IPP) on

Build, Own, Operate and Transfer (BOOT) basis through competitive bidding.

In order to give further impetus to exploitation of hydel potential, the State

Government has decided to revise the State Hydel Policy of 2003 to fulfill the

following objectives:-

1. Expeditious development of available hydro power of the State.

2. Maximization of benefits to the State by meeting its power requirements

and giving a fillip to economic growth.

3. Provide employment opportunities to the people of the State.

4. Develop hydropower projects in an environment-friendly manner with

minimum dislocation of project affected people.

5. Provide for creation of social and development infrastructure of the local

area by hydro power developers and through the Local Area

Development Fund.

6. To accelerate the pace of hydropower development through private

sector participation by removing the implementation related difficulties of

IPPs.

7. To bring in the investment and associated efficiency from the private

sector.



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Accordingly the State Government has decided to announce this policy called the

“J&K State Hydroelectric Projects Development Policy 2011”, which replaces the

earlier Policy of 2003.

2. Scope of the Policy

2.1 This policy shall be effective from the date it is notified by the Government

of Jammu & Kashmir. All projects awarded under this policy will be governed

by this policy for their entire duration.

2.2 The policy shall apply to such Hydropower projects/stations of estimated

installed capacity of 2-100 MWs as may be notified by the JKSPDCL for

execution by IPPs.

2.3 Hydropower Projects of more than 100 MWs capacity shall not be covered

by this policy. Policy framework, guidelines, bidding parameters, etc for this

category will be project specific and shall be notified accordingly.

2.4 Projects upto 10 MWs shall be reserved for execution by IPPs that are

permanent residents of Jammu & Kashmir. This would include such IPPs in

which permanent residents of J&K hold majority stake. This condition shall,

however, be relaxed, in case the bidding process of the project so reserved

does not result in adequate and competitive response.

3. Nodal Agency

Jammu & Kashmir State Power Development Corporation Limited, a

Government of Jammu & Kashmir PSU, incorporated in 1995 under the

Companies Act, 1956 and having its registered office at Srinagar Kashmir,

shall be the Nodal Agency on behalf of the State Government to conduct the

bidding process, award these projects, carry out necessary documentation,

sign agreements, monitor during construction and operation, take over the

project from the IPP and take all other necessary steps as required under the

policy.

4. PROJECTS

4.1 JKSPDCL will prepare the PFRs of the potential sites.



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4.2 The projects shall be offered for the Concession Period of 35 years from

the scheduled COD which shall be fixed while according of Techno Economic

Clearance (TEC) by JKSPDCL after allowing for suitable construction period

from the date of award of the project. JKSPDCL may however, extend the

Concession Period due to Force Majeure or reasons beyond the control of IPP.

4.3 At the end of the Concession Period, the projects shall be ordinarily

transferred to JKSPDCL on payment of terminal value without any

encumbrances. The Concession Period may, however be, extended beyond 35

years on mutually agreed terms and conditions.

4.4 The Project assets shall be maintained by the IPP in a condition that

would ensure residual life of the project at the rated capacity for at least 20

years at any point of time including the time of transfer of the project to the

State by the IPP. JKSPDCL or its authorized agencies would carry out

mandatory inspections on regular basis to ensure the same. The IPP shall

provide unhindered access to JKSPDCL to enter the project.

4.5 If such inspections reveal that the plant capacity and/or residual life of the

project are being undermined due to inadequate maintenance or insufficient

capital infusion, JKSPDCL shall order remedial measures to be taken by the

IPP. If the IPP fails to comply with these directions, the JKSPDCL shall be at

liberty, after providing due opportunity of being heard to the IPP, to terminate

the Concession Period. While doing so, a termination compensation value shall

be determined on the basis of estimated net cash flows to equity shareholders

for the next ten years or residual period of concession, whichever is less,

discounted at a suitable rate. Both, the assessment of cash flows as well as

the discount rate, would be as per the approval of JKSERC which will also

factor in the costs of recapitalization, refurbishment, renovation, repairs, etc.

required to bring the project to the necessary standards.

4.6 The IPP will be responsible for all project related activities pertaining to

environmental aspects, Rehabilitation and Resettlement (R&R), Environment

Impact Assessment (EIA) studies and preparation of Environment

Management Plan (EMP) and its implementation. These measures shall be

governed by Central/State policies in this regard.



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4.7 In case of canal fall schemes, the availability of water in the canal will be

subject to irrigation demand and to that extent the IPP shall not have any

right over water for power generation.

4.8 JKSPDCL will acquire land strictly as per component wise project

requirement for the IPPs and lease the same to the IPPs on payment of

premium/rentals to be determined by the Government till the expiry of

Concession Period.

4.9 Construction of project infrastructure including approach roads,

arrangement for water supply, power for construction purposes, etc. shall be

the responsibility of the IPP and the cost thereof shall be borne entirely by the

IPP.

4.10 Since potential sites would be notified on the basis of preliminary

reconnaissance and PFRs only, the IPPs are expected to verify various project

related parameters viz. discharge, head, water availability, habitation, etc. The

information contained in the PFR is only indicative and JKSPDCL shall not be

responsible for the accuracy of the information contained therein. IPPs shall

also ensure that the Project components do not fall in wild life sanctuaries,

National parks, eco protection zones, etc. and also do not interfere / overlap

with the existing/ ongoing Hydel Projects.

4.11 Implementation of projects shall be governed by Indus Water Treaty

1960 signed between India and Pakistan and therefore have to be cleared

from Indus Water Treaty angle.

5. PREQUALIFICATION

5.1 A two stage bidding process will be adopted comprising Request for

Qualification (RfQ) followed by Request for Proposal (RfP). Bidders who are

declared qualified after submission of RfQ documents and evaluation will be

allowed to participate further and bidders who are declared not qualified will

not take any further part in the bidding process.

5.2 Pre-qualification of the bidders shall be based on

(a) Primary qualification: financial capacity to mobilize the required resources

and bring in or raise equity contribution; and



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(b) Secondary qualification: experience of development, construction and

operation of hydro projects or other relevant experience in the power sector.

The bidders will be required to provide proof of their qualification viz., balance

sheets, annual reports and other reported evidence of financial and technical

capacity. While evaluating the financial capacity of the bidders, the projects

already under execution by the bidder in the State shall be netted off.

5.3 The requirement/threshold value in respect of financial capacity, technical

capability, experience and other relevant attributes of the bidders, shall be

specified in the RfQ. Criteria for evaluation shall also be laid out in the RfQ.

5.4 Ordinarily, no IPP would be awarded more than 3 Projects or projects with

aggregate capacity of more than 200 MWs, whichever is higher. While making

such assessment, Projects already under execution by the IPP in the State

shall be taken into account.

5.5 Change of composition of Consortiums/Joint Ventures shall not be

permitted without approval of JKSPDCL after submission of bids/award of

project as it has direct relation to the pre-qualification of the IPP.

6. PROCESS OF ALLOTMENT

6.1 The projects shall be advertised in order to seek competitive bids. A two

stage bidding process comprising of Request for Qualification (RfQ) and

Request for Proposal (RfP) shall be conducted. Each application in response to

the advertisement shall be accompanied by a refundable Earnest Money

Deposit (EMD) as notified in the bidding document.

6.2 The Request for Qualification shall also be accompanied by a non-

refundable deposit towards processing fee in the shape of demand draft of Rs.

1.00 lac (Rupees one lac) for Projects upto 10 MWs and Rs 2.00 lacs (Rupees

two lacs) for projects more than 10 MWs drawn in the name of Jammu &

Kashmir State Power Development Corporation Limited (JKSPDCL), payable at

Srinagar or/Jammu. This processing fee shall be for each Project for which

IPP submits RfQ.

6.3 All bidders will be subject to pre-qualification as provided in paragraph 5.

Qualified bidders will be provided with the PFR and where-ever available, with

DPR prepared by the JKSPDCL along with RfP.



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6.4 The successful bidders would be required to pay an upfront premium

which shall not be less than Rs.4.0 lacs per MW for 2-25 MW Projects, not less

than Rs.6.0 Lacs for Projects above 25 MW and upto 50 MW and not be less

than Rs.8.0 Lacs per MW for Projects above 50 MW and upto 100 MW. The

exact value of the upfront premium shall be specified in the bid document.

6.5 Proposals shall be invited from the qualified bidders on the basis of the

following variables, as may be specified in the bid document :-

i. Free Power to J&K subject to a minimum of 15 % throughout the

Concession Period, apart from 1 % for LADF.

ii. Tariff for Power (only in respect of projects above 25MW projects),

to be procured by J&K, the quantum of which shall be not less than

30% (after netting off free power and LADF).

iii. Terminal value to be paid to the IPP at the time of transfer of the

project to the State, which shall be not more than 10% of the

estimated cost of the project indicated in the bidding document.

6.6 The bids will be evaluated on the principle of net payment to the

developer i.e outflow to the developer minus inflow to the State. While upfront

premium & free power would be the inflow to the State, cost of power

procured by J&K and terminal value would be the outflow to the developer.

Net Present Value (NPV) shall be worked out for all cash streams on CERC

approved discounting rates as on Scheduled COD. Projects will be allotted to

the bidder with the lowest NPV.

6.7 The successful bidder shall be required to deposit the upfront premium

and other amounts due, within two months of receiving the intimation

regarding his bid being successful. The successful bidder may be permitted to

provide 50% of the bid amount in excess of the threshold premium as Bank

Guarantee encashable at the time of actual or scheduled financial closure,

whichever is earlier.



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7. TRANSFER OF ALLOTMENT

Transfer of shares, as per law, will be permitted to the IPPs that have been

allotted the projects. However, permanent residents of Jammu & Kashmir shall

hold majority share in companies which are awarded projects under reserved

category as per clause 2.4.

8. TIMELINES FOR EXECUTION OF PROJECTS:

8.1 Timelines for execution of a project allotted to an IPP shall be as follows:-

Activity Indicative Timelines *(in months)

2-25 MWs 25-100 MWs

Letter of Award T0 T0

Payment of Upfront Premium along

with Performance Guarantee (@ Rs

10 lac per MW) by the IPP.

T0 + 2 T0 + 2

Investigation & submission of DPR by

the IPP

T0 + 18 T0 + 24

TEC of DPR by JKSPDCL after

submission of all the necessary

documents and clarifications by the

IPP

T0 + 22 T0 + 28

Signing of Implementation

Agreement between the IPP &

JKSPDCL

T0 + 23 T0 + 29

Obtaining of all Clearances and

achieving Financial Closure by the

IPP

T0 + 30 T0 + 40

Scheduled COD of the Project Shall be fixed by

JKSPDCL while

according TEC

Shall be fixed by

JKSPDCL while

according TEC

* The timelines indicated in this Table generally give the maximum period

required for a particular step in execution of a project. The timelines may be

specifically stated for particular projects on considerations of availability of the

DPR, clearances, site suitability, etc.



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8.2 JKSPDCL will consider granting extension to the IPP on its request for fixing

revised timelines, only if it is established that the slippage in timelines has

occurred due to force majeure conditions or reasons beyond the control of the

IPP.

8.3 Failure to meet the above timelines or revised timelines as per 8.1 & 8.2

above, may attract a penalty on the IPP depending on the degree of slippage. In

any case, a penalty @ Rs 5 lacs per MW shall be imposed on the IPP for every

month of delay in financial closure before resetting the timelines. Also, a penalty

@ Rs 5 lacs per MW shall be imposed on the IPP for every month of delay in

scheduled COD.

8.4 Failure to meet any of the timelines mentioned above or revised timelines as

approved by JKSPDCL may also result in cancellation of allotment of the Project

to the IPP, and forfeiture of upfront premium amount without any compensation.

8.5 The IPP may surrender the allotment if on formulation of the DPR within the

stipulated time-frame, it establishes, to the entire satisfaction of JKSPDCL, that

the project is techno-economically unviable. On such surrender, the bank

guarantee provided by the IPP in lieu of upfront premium as well as the

performance guarantee would be released and the premium amount would be

refunded to the IPP.

8.6 If COD is achieved earlier than scheduled COD, IPP will not be required to

provide free power/Royalty upto the scheduled COD.

9. SALE OF POWER

9.1 The IPP shall, after allowing for J&K’s share of power including free power,

be free to sell the balance power as it deems fit, within or outside the State. In

case of sale to the State, its supply shall be metered at interconnection point.

9.2 In respect of projects upto 25 MW, J&K shall procure 30% power at the tariff

determined by the Regulator.

9.3 In respect of projects above 25 MW, J&K shall procure quantum of power as

indicated in the bid document at the tariff determined through competitive

bidding process.



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9.4 In respect of balance power, J&K shall have first right of refusal.

10. GRID INTERFACE-OPEN ACCESS:

Open Access

10.1 On allotment of a project, the IPP will approach the appropriate utility for

grant of open access, who shall analyze the system availability and grant open

access, duly identifying the interconnection point, infrastructure required upto

the interconnection point, specifications, evacuation voltage, etc.

10.2 The IPP shall be responsible for developing the necessary infrastructure to

facilitate the connectivity/synchronization with the Grid.

11. DISPATCH:

Priority will be accorded to the IPPs for dispatch into the grid ahead of merit

order and any other source of supply, subject to any system constraints/grid

disturbances or restrictions imposed by the State Government in the interest of

the State.

12. OPEN ACCESS CHARGES

12.1 The infrastructural facilities of TU, as available, will be provided to IPPs for

wheeling and transmitting the generated energy.

12.2 For supply of committed power i.e free power plus power procured by

State in grid connected or isolated mode, the available transmission

/distribution networks of the State’s Transmission/Distribution Utilities shall be

utilized and IPP will not be required to pay any wheeling/transmission charges.

12.3 For supply of balance power (other than committed power to J&K), the

State Transmission/Distribution networks of transmission/distribution Utility, can

be utilized for which open access charges shall be borne by the IPP as per

JKSERC regulations. T&D losses will also be borne by the IPP, as per JKSERC

regulations.



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12.4 The T&D losses for intrastate wheeling/transmission shall be as per the

JKSERC regulations for State Transmission Utility/State Distribution utility

network and for wheeling/ transmitting beyond STU on CTU network, it shall be

as per CERC regulations.

13. INCENTIVES:

13.1 No entry tax will be levied by the State Government on power generation,

transmission equipment and building material and construction equipment for

Power projects awarded under this policy.

13.2 Exemption from Income tax on account of income accruing from micro-

hydel power projects shall be governed as per the Government of India policy in

vogue.

13.3 IPP may pursue CDM benefits from the project at its own risk and

responsibility. Sharing of the CDM benefits between IPP and JKSPDCL will be as

per CERC/SERC regulations.

13.4 Projects awarded under this policy shall be exempted from water usage

charges imposed under the “J&K Water Resource Regulation and Management

Act 2010” for the first 10 years of operation reckoned from Scheduled

Commercial Operation Date.

13.5 The projects up to 25 MW can avail incentives from MNRE as per the

National Policy.

14. ROLE OF STATE’s TRANSMISSION / DISTRIBUTION UTILITY

AND JKSPDCL

14.1 The State Transmission/Distribution Utility shall be responsible for executing

Power Purchase Agreement (PPA), Transmission/Distribution Service Agreements

(TSAs) as required, determination of evacuation requirements and overseeing

scheduling, dispatch, royalty and energy accounts. Model PPA is enclosed as

Annexure-III. Open access application, transmission/distribution agreements

shall be as per the formats prescribed by JKSERC Regulations, 2006.



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14.2 JKSPDCL will be responsible for preparation of pre-feasibility report, carrying

out the bidding process and monitoring of the development of allotted

projects/delivery as per timelines. In case JKSPDCL has the DPR, the same shall

be made available to IPPs against actual cost incurred on its preparation. A

period of six(6) months shall be allowed for review/revalidation of the DPR and

other milestones/timelines shall be adjusted accordingly.

14.3 JKSPDCL will not participate in the bidding process. However, after the

allotment, upon request from the IPP, the JKSPDCL may consider participating as

a minority partner (with less than 50% shareholding interest) or perform certain

tasks for the bidder on a consultancy basis including preparation of DPR. Such

participation would be independently negotiated between JKSPDCL with the IPP

and is not mandatory on the part of JKSPDCL.

14.4 JKSPDCL shall also be responsible for executing the Implementation

Agreement with the IPP. Model Implementation Agreement is enclosed as

Annexure-IV.

15. ROLE & RESPONSIBILITIES OF IPP

The roles & responsibilities of IPPs shall be including but not limited to

following:-

15.1 IPP will be responsible for doing all confirmatory survey and investigation

including site access, etc at its own cost leading to preparation of DPR.

15.2 The onus of obtaining all statutory and non-statutory clearances will lie on

the IPP. JKSPDCL shall facilitate the process. In respect of clearance from Indus

Water Treaty angle, JKSPDCL shall provide necessary support to the IPP.

15.3 The IPP shall be responsible for ensuring submission of documents

complete in all respects to concerned authorities. Failure to do so within the

stipulated time frame shall be treated as non-compliance of the policy and

implementation agreement.

15.4 IPP shall be responsible for all the R&R activities, including cost of

implementation plan, as approved by GoJK.



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15.5 While providing employment for construction as well as O&M activities, IPP

shall endeavour to give preference to locals, as per their availability and

suitability.

15.6 IPP shall discharge its Corporate Social Responsibility (CSR) as per

global/national standards towards the project affected area and the Project

affected families.

15.7 IPP shall refrain from causing pollution and damage to environment and

take all necessary steps for protection of environment.

15.8 IPP shall carry out due diligence in all matters related to project

development including bidding for the project and participate in the process in

the spirit of partnership towards the common objective of augmenting the power

availability in the State.

15.9 The IPP shall be responsible for executing the PPA, TSA/DSA and IA with

the State & JKSPDCL.

15.10 The IPPs shall give preference to locally manufactured

material/components for construction and maintenance of the project subject to

the availability and suitability of the same.

16. REGULATORY OVERSIGHT:

Aspects of this policy that require regulatory approvals from the concerned

Regulator/prescribed authority would be subject to such approvals being given

and would apply in the manner so approved.

17. DUE DILIGENCE:

The applicant /IPP shall be responsible for carrying out due diligence with regard

to his compliance responsibilities under various applicable Central/State/other

laws, rules and regulations and ensure compliance with the same.

18. POWER TO RESOLVE DIFFICULTIES:

In the event of a dispute, the interpretation of these guidelines by the JKSPDCL

shall be final. In all such matters to the extent practicable, an opportunity shall

be given to the affected stakeholders to be heard before a decision is taken.



19

19. COURT JURISDICTION:-

In respect of all disputes arising out of the bidding process which may arise at

any time, the courts in Jammu & Kashmir shall have exclusive jurisdiction

-------------------



20

ANNEXURE-I

(Projects under Operation in the State)

S.No Name of Project Basin Capacity in MWs

Configuration (MW)

State Sector

1 LJHP Jehlum 105.00 3 x 35

2 USHP-II Kangan Jehlum 105.00 3x35

3 USHP-I Jehlum 22.60 2 x 11.3

4 Ganderbal Jehlum 15.00 2x3+2x4.5

5 Pahalgam Jehlum 3.00 2 X 1.5

6 Karnah Jehlum 2.00 2 x 1

7 Baglihar-I Chenab 450.00 3x150

8 Chenani-I Chenab 23.30 5 x 4.66

9 Chenani-II Chenab 2.00 2 x 1

10 Chenani-III Chenab 7.50 3 x 2.5

11 Bhaderwah Chenab 1.00 2 X 0.5

12 Iqbal Indus 3.75 3 x 1.25

13 Sumoor Indus 0.10 2 x 0.05

14 Hunder Indus 0.40 2 x 0.20

15 Bazgo Indus 0.30 2 x0.15

16 Igo- Marcelloung Indus 3.00 2x1.5

17 Marpachoo Indus 0.75 3x0.25

18 Haftal Indus 1.00 2x0.5

19 Satakna Indus 4.00 2 X 2

20 Sewa-III Ravi 9.00 3 x 3

Sub total 758.70

Central Sector

1 Salal Chenab 690.00 6x115

2 Dulhasti Chenab 390.00 3 x130

3 Uri-I Jehlum 480.00 4x120

4 Sewa-II Ravi 120.00 3x40

Sub total 1680.00

Private Sector

1 Athwatoo Jehlum 10.00 2x5

2 Brenwar Jehlum 7.50 3 X2.50

Sub total 17.50

Grand total 2456.20



21

ANNEXURE-II

(Projects awarded through bidding to IPPs

in Phase-I under State Hydel Policy of 2003)

S.

No

Name of SHP with Source Capacity

MW

status

1 Athwathoo, Bandipora Distt

(erstwhile Baramulla district)

Madhumati Nallah

10 Commissioned

2 Brenwar SHP, District Budgam

Doodhganga Nallah

7.5 Commissioned

3 Tangmarg SHP, Distt Baramulla

Ferozpora Nallah

10 Work in Progress

4 Aharbal SHP District Pulwama

Vishow Nallah

22.5 Clearances yet to be

obtained by the IPP.

5 Hirpora SHP District Pulwama

Rambhir Nallah

12.00 IPP engaged in

obtaining clearances

and land acquisition.

6. Kahmil SHP District Kupwara

Kahmil Nallah

4 IPP engaged in



7. Boniyar SHP District Baramulla

Hapathkhai Nallah

12 IPP engaged in



8. Mandi SHP District Poonch

Mandi Nallah

12.5 IPP engaged in



9. Ranjala Dunadi SHP District Doda

Lower Kalnai Nallah

15 Work in progress.

10. Drung SHP District Kathua

Ujh Nallah

5 IPP engaged in



Total (10 Projects) 110.50

MWs

Documents

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