Concerns raised over good return on capital investment
Mohinder Verma
JAMMU, Dec 7: Uncertainty continues to prevail over the start of work on Ujh Multipurpose Project in Kathua district, which was planned several years back, as concerns have been raised over good return on the capital investment to be made by the Union Government.
Official sources told EXCELSIOR that the modified proposal of Ujh Multipurpose Project was considered in the 148th meeting of the Technical Advisory Committee of Ministry of Jal Shakti in the meeting held on January 17, 2022. Accordingly, the revised proposal was accepted at an estimated cost of Rs 11907.77 crore.
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In the earlier proposal, it was mentioned that project estimated to be completed at a cost of Rs 9167 crore will provide irrigation facility to 76929 hectares and it will also generate 196 Mega Watts of electricity. However, in the revised Detailed Project Report, it was mentioned that the project will be completed at a cost of Rs 11908 crore at December 2019 price level and it will provide irrigation facility to 91073 hectares of land but the power generation will be only 89.50 Mega Watts.
After completion of all the formalities, the project was finally placed before the Public Investment Board (PIB) headed by Secretary (Expenditure) in the Union Finance Ministry as PIB is a body that has been entrusted with the task of reviewing and approving the projects with more than a budgetary outlay of Rs 500 crore.
“The PIB has raised concerns over the good return on the capital investment to be made by the Union Government in the Ujh Multipurpose Project”, sources informed, adding “the opinion of Public Investment Board carries immense importance as it has the key role to ensure that projects are properly examined and approved before they are implemented. Moreover, the Board also examines the proposals for increasing authorized share capital and for obtaining Government guarantees for loans from financial institutions”.
They further informed, “in view of the opinion of the Public Investment Board there is uncertainty over the start of work on Ujh Multipurpose Project”. However, they said, “as the project was planned for enhanced utilization of waters of Eastern Rivers allotted to India as per the Indus Water Treaty (IWT) by making use of the flow that presently goes across border to Pakistan, the Government of India may find out some alternative to the opinion of Public Investment Board”.
“No doubt the project will not offer a very good return on capital investment but it will definitely bring improvement in the socio-economic conditions of the people, farming practices and ultimately increase in yield will lead to the development of the area. In view of these aspects there is possibility of intervention of highest level in the Government of India”, sources said.
It is pertinent to mention here that the Multipurpose Project is proposed to be built on River Ujh, one of the main tributaries of River Tawi. The dam site has been proposed at village Barbari about 1.6 kilometres downstream of Panjtirthi and the power house site 9.5 kilometres downstream of dam site near village Deoli.
The project, if executed, will also solve the drinking water problem of the people and provide relief from the miseries of flood, which causes havoc every year during Monsoon season. Further, the project has the scope of indirect benefits such as pisciculture, tourism and other progressive development.
The Detailed Project Report of the project, which was declared as a National project in year 2008, was initially prepared by Indus Basin Organisation of Central Water Commission (CWC) in the year 2013. The DPR was, later, revised a number of times.
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