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Special Reports/Water Crisis  

Water War May Extend Kashmir's Dark Phase

SRINAGAR, Pakistan has set a December 31 deadline for stoppage of work on a US $800 million hydroelectric project under construction in Indian-administered Kashmir, which could spark tensions between the subcontinental rivals and prolong the power crisis in the state.

Pakistan - which has gone to war thrice with India - is concerned over the construction of a reservoir for the 450 megawatt (MW) project on the Chenab river, claiming that it violates a 43-year-old water-sharing treaty.

After the Indian side downplayed Pakistan's fears, saying it would press ahead with the project which the power-starved state desperately needs, Pakistan asked the World Bank to intervene.

The Bank, which brokered the 1960 Indus Water Treaty, stands as its guarantor. According to the treaty, third-party intervention is permissible in case of a deadlock over any issue.

The Chief Minister of Indian-administered Kashmir, Mufti Mohammad Sayeed, says the Pakistanis are unduly nervous. "We have no plans to stop water in the reservoirs. Pakistan's objections are unacceptable and should be withdrawn," he remarks.

The June 1999 launched Baglihar project is slated to begin generating power by late 2004. "The project would go a long way in helping the power-starved state become self-reliant," says Power Minister Muhammad Sharief Niyaz.

Worse, Pakistan's objections come at a time when US $2 billion has already poured into infrastructure, involving the work of thousands of engineers and laborers.

India's federal government has sanctioned a grant of US $126 million for the project and Indian commercial banks have committed US $300 million.

And in a landmark legislation last week, the state's lawmaking assembly amended the Transfer of Property Act, facilitating investment by Indian financial institutions and banks in the project in lieu of mortgaging state land.

But with Pakistan threatening arbitration, the dark phase may be prolonged in the insurgency-torn region where round-the-clock power supply is a distant dream.

Kashmir is currently facing a daily seven-and-a-half-hour power cut. The average per capita electricity consumption is 223.7 kilowatt (KW) hours, much below the national average of 349.1.

The irony is that the state has abundant water resources to generate 20,000 MW of power, but less than ten per cent of it has been exploited.

"This is partly because of the Indus Water Treaty which bars the state from harnessing the water resources and partly because the Indian government is less interested in the state's industrial development," complains lawmaker and a senior leader of the opposition National Conference, Ali Muhammad Sagar.

"Our demand shoots up to 850 MW during peak hours but the local generation is less than 100 MW," points out the chief engineer of the Power Development Department (PDD), Syed Khursheed.

The shortfall is made up by bulk import of electricity. "We have entered into an agreement with the Power Trading Corporation of India for supply of 100 MW in peak hours and 200 MW during off peak hours from November 2003 to the end of February 2004," says Niyaz.

Such power-packed imports don't help in balancing the state's books.

According to the Power Ministry, by the end of March 2004, the current year's expenditure on electricity imports will total US $360 million.

Kashmir's power plants are also plagued by idle capacity, with many small ones producing 63 MW against a capacity of 240 MW.

"Generation dips due to the decrease in water levels in winter and because of technical faults," points out Khursheed.

The Kashmir Valley also boasts the 380 MW Uri Hydel Project, but as it is owned by the National Hydel Power Corporation (NHPC), a federal agency, the state gets just 12.5 per cent of the power generated as royalty.

A diesel-run gas turbine plant exists in the outskirts of the capital, Srinagar, but the daily expenditure for running the gas turbine amounts to US $200,000, which the cash-strapped state can ill-afford.

Kashmir's major worry is how to keep its electricity books in some shade of black. While the government had set a target of US $145 million, in the past nine months, the revenue collection has grossed just US $20.6 million.

Bills worth US $80 million are pending against various government departments. These departments and the security forces together consume 44 per cent of the state's total power.

There are glitches in transmission and distribution too. Experts admit that 40 per cent of electricity is lost due to faulty infrastructure.

According to the authorities, around 250 villages in Kashmir, mainly along the Line of Control that divides Kashmir between India and Pakistan, still remain without power.

Says a senior official, "Due to heavy snowfall, many of these villages got cut off 12 years ago and the supply was not restored afterwards."

Militancy has also affected the power sector in Kashmir. In 2000 and 2001, transmission towers were mysteriously blown up, upsetting power supply for months. Officials blamed separatists but no arrests were made.

Curtesy: OneWorld.net  

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