NHPC’s Finance Director has said that there is no illegality involved whatsoever in the J&K Region Projects

Amid controversy over the legality of hydroelectric projects run in Jammu and Kashmir, NHPC’s Finance Director has said that there is no illegality involved whatsoever in the J&K Region Projects.

NHPC and J&K government have locked horns over several projects which the former is operating in the state.

In a recent article, Mr. Srivastava said that if any political party rakes up the issue of taking away projects from NHPC, the company will take the matter to the power ministry.

While the government says the company has no right over any projects as the agreement has expired long back, and hence ownership of projects is in fact that of the state. NHPC argues that the projects are in accordance with the agreement of the Transfer of Property Act and in line with the Central government mandate.

Srivastava pointed out that due to the controversy, capacities and projects have been stalled and this is an area of concern for the company. Another concern is also the low rate of return on equity. NHPC has requested the Central Electricity Regulatory Commission (CERC) to review return on equity (ROE).