Flash floods in J-K pushed end dates of hydel power projects by 3 to 5 months: J-K Bank MD

Srinagar, Oct 20 (PTI) Jammu and Kashmir Bank MD and CEO Amitava Chatterjee on Monday said the flash floods caused by heavy rains a couple of months earlier have delayed the completion of hydel power projects in the Union Territory by three to five months.

He, however, said that while there was no direct impact of it on the bank as of now, there was a possibility of cost overrun in these projects.

Jammu and Kashmir has been battered by a series of natural calamities like cloudbursts, extremely heavy rains and huge landslides in the past couple of months, which left several dead, battered infrastructure, and upended normal life.

"Most of the infrastructure projects, like the hydel (power) projects which are in progress in the state, are being delayed by three to five months. That is the negative impact that has happened (due to rains and floods).

"We had a review recently. The DCCO (Date of Commencement and Commercial Operations) has been impacted by three to five months, which will impact the commercial production, and that will again have a negative impact," Chatterjee told PTI in an interview.

However, he said, there is no direct impact of it on the bank. "Our funding is in place. Mostly, in all these units, we have a share from our bank. The progress has been halted, but I don't see a major cost overrun. I have spoken to these (executing) companies, and they can fund it on their own." There are five major power projects with a combined generation capacity of nearly 3,100 megawatts, which are currently at various stages of construction in Jammu and Kashmir. These projects include Ratle (850 MW), Pakal Dul (1,000 MW), Kiru (624 MW), Kwar (540 MW) and Parnai (38 MW).

Four of these five projects are on the Chenab river or its tributaries in Kishtwar district, which was severely affected by the cloudburst and heavy rains in August this year. Only the Parnai power projects are located in Poonch district.

More than 60 people died while 300 others were injured in the cloudburst at Chositi in Kishtwar district on August 14.

Asked if the bank has seen any surge in borrowings from the flood-affected areas, Chatterjee said there has not been any indication of such a thing.

"They have not come as an opportunity yet. All (rehabilitation) efforts are being taken care of at a level where they have not asked for any funding from the bank," he added. PTI MIJ NSD NSD