NEW DELHI, March 10 ? Even as ongoing projects are gasping for funds, the North Eastern Electrical Power Corporation (NEEPCO) has surrendered foreign direct investments (FDI) worth Rs 83.26 crore because it failed to utilise the funds owing to adverse law-and-order situation in the region. While the North Eastern State Chief Ministers are crying hoarse over lack of foreign investments in that part of the country, NEEPCO failed to award work for various packages connected with project work on 60 MW Tuirial hydroelectric project (HEP) in Mizoram due to ?various reasons? including impact of the law-and-order situation. The entire fund invested by JBIC and sanctioned in 2000-2001 was later surrendered.
Interestingly, Mizoram where the project is located, is stated to be peaceful among the seven north eastern States so much so that the Central Government on a specific recommendation of the Ministry of Home Affairs (MHA) had sanctioned a peace bonus worth Rs 80 crore to the State during the period. The Parliamentary Standing Committee attached to the Ministry of Power taking a serious note of the lapse has remarked that it was distressed to find the way the project implementation was delayed by NEEPCO. The Committee would like to know the various reasons due to which the works at Tuirial HEP could not be awarded?, the report tabled in Parliament on Friday said.
In response, the Ministry of Power has replied that NEEPCO could not award work relating to the project because engineers and staff at the project site were kidnapped by militants following which the foreign direct investments had to be surrendered. The NEEPCO proposes to award work in 2001-2002 and a provision of Rs 82.72 crore has been made, the Ministry has clarified. NEEPCO has three projects including 405 MW Ranganadi project in Arunachal Pradesh, the Tuirial and 25 MW Stage II Kopili HEP in Assam under execution in the North-East. There are several others including the 75 MW Doyang HEP, 1500 MW Tipaimukh HEP, besides the 25 MW Kopili Stage-I.
Significantly, a number of NEEPCO projects are fated to suffer owing to slashing of budgetary allocations. The budgetary provision for Tuivai HEP was drastically reduced by Rs 20 crore, as the project could not get sanction. ?The Committee is constrained to note that due to low investments during the last financial year, a number of projects are likely to be adversely affected?. Although a number of projects are being executed by NEEPCO, the Government has reduced budgetary allocation and the Corporation?s total plan outlay, the Committee under the chairmanship of Santosh Mohan Dev, observed. The Centre?s approach towards implementation of projects like the Tipaimukh Hydel Project has raised the ire of the Committee. The Committee does not appreciate the lackadaisical approach of the Government regarding Tipaimukh project. It has been brought to the notice that the MoU between Manipur Government and NEEPCO is yet to be signed leading to further delay in implementation of the project.
Apart from suggesting that NEEPCO take up the issue with North Eastern Council (NEC) to expedite the project, it has recommended that it should not brook any further delay in obtaining the no objection certificate (NOC) from the Assam Government for execution of the project. Mizoram Government has already conveyed its no objection. The Central Government has said that it is keen to implement the project. It has clarified that the MoU with Manipur Government could not be signed because the draft MoU and revised DPR needed to be approved by the State Government. In the meantime, NEEPCO has applied for site clearance from the ministry of Environment and Forest.
The Power Ministry told the Committee that the Tipaimukh is to be executed under the new procedure of three-stage development of Central sector HEP. The preparation of the feasibility report is over and the NEEPCO has to work out the detailed plan for obtaining the approval of the Central Government for Stage-II. Meanwhile, the Parliamentary Committee has sought a status report on progress in utilisation of funds earmarked for upgrading the sub-transmission and distribution system in the North East and Sikkim. The Committee expressed its dismay at the silence of the Government on utilisation of Rs 52 crore disbursed during 2000-2001 for upgradation of the transmission system in the region. The allocation was enhanced to Rs 83.49 crore the next financial year.