Rift with Pakistan ups Indian power project costs

The water disputes between India and Pakistan are making the costs of hydroelectric projects escalate, say India’s power department officials.

The cost of the 330MW Kishenganga project has gone up from approximately $490 million to $800 million, according to statistics provided by the power development department. The deadline for its completion has also been extended by two years.

Work started over Kishenganga river in Bandipore district of Jammu and Kashmir in October 2009 and was to be completed in five years.

Due to objections raised by Pakistan, which is protesting the diversion of river waters for the hydroelectric project citing provisions of the Indus Water Treaty, the project will get completed only by 2016, say power department officials.

Pakistan had raised objections over the 450 MW Baglihar power project in Ramban district of Kashmir. The project was to be completed in 2004, but it could be done only by 2008.

"Pakistan should have no objection as the project construction follows all norms of the Indus Water Treaty," a senior officer of the state government told IANS.