The stalemate between the government and public sector undertakings (PSUs) entrusted with overseeing two power projects in the Valley has not ended because the PSUs are unwilling to reduce their profit margins. Last month, the Government of India’s power ministry had asked the state government to reduce the PSUs’ profit margins from 9.75 percent to 6 percent.
Kashmir Reader has learned that the companies, REC Power Distribution Company Limited (REC PDCL) and PGCIL (Power Grid Corporation of India Limited), told the power department in a meeting on Wednesday at Jammu that they cannot start work at 6 percent profit.
A top PDD official privy to the development said that the companies are willing to start work by reducing the 9.75 percent profit by one-fourth, that is, by 2.43 percent.
“A meeting in this regard was held in Jammu on November 29. No decision was taken as the companies refused to accept the government’s offer. The meeting ended without any results because the companies were ready to cut rates by 25 percent on the 9.75 percent profit margin. No dates for a fresh meeting were decided,” the PDD official said. Read More…
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