Highly placed NTPC sources disclosed that a presentation to this effect was made before senior executives of the PSU last week.

The three hydro projects which the NTPC is eyeing are the 420 mw Lakhwar Vyasi multi-purpose project, the 330 mw Srinagar hydro project and the 304 mw Maneri Bhali II hydro project. In the case of the Lakhwar Vyasi project on the river Yamuna and the Maneri Bhali project on the river Bhagirathi, considerable work had already been done before the two projects were virtually abandoned by the state electricity board some eight to ten years back on account of paucity of funds.

Knowledgeable sources disclosed that as per the preliminary proposal mooted by NTPC, the expenditure borne on the projects as wellas land and equipment provided by UPSEB would be considered as its share of the equity in the joint venture while NTPC would pump in the remainder. Uttar Pradesh State Electricity Board has thus far incurred an expenditure of Rs 212 crore on the Lakhwar Vyasi project as on March 31, 1997, which includes the entire work of the roof arch of the Lakhwar underground power house complex, considered to be the most difficult and problematic task technically in the underground works.

In addition, about 85 per cent of the work of the power house cavity as well as 18 per cent of the excavation of the cable tunnel has been completed as well. Apart from this, the stripping of the Vyasi dam abutments is almost complete as is the excavation and supporting of the Vyasi Hathiari head race tunnel. Then, about 65 per cent of the work of acquiring land and property coming in the submergence area has also been done, according to sources. Subsequent to this, however, work on the project came to a halt in 1990 due to a fundscrunch with the result that the cost of the project which initially estimated at Rs 400 crore has shot up to a staggering Rs 1446 crore as on March 31, 1996.

Similarly, in the case of the Maneri Bhali II hydro project, the Uttar Pradesh State Electricity Board has incurred an expenditure of around Rs 167 crore to date which includes completion of 80 per cent of the barrage works, 40 per cent of the intake structure, and almost 75 per cent of the excavation work.

Work on the project has been at a standstill for over five years now resulting in a cost escalation from an estimated Rs 350 crore to Rs 837 crore.

Recently, a team comprising senior NTPC officials surveyed the two projects along with the Srinagar 330 mw hydro power project on the Alaknada river on which Uttar Pradesh State Electricity Board has already spent Rs 80 crore out of a total project cost of Rs 1,052 crore and decided that all three projects were still viable and floated the idea of a joint venture with UPSEB. ``The initial feedbackfrom the Uttar Pradesh State Electricity Board has not been very encouraging since the state electricity board wants to execute these projects on its own,'' admitted an National Thermal Power Corporation insider.

However, given the fact that the state electricity board is saddled with colossal losses and is among the major defaulters of National Thermal Power Corporation, with outstandings amounting to Rs 1,357 crore, it seems well nigh impossible for the board to cough up the kind of funds required to revive projects like these three, sources said.

And with the state government itself in the throes of the worst-ever financial crisis, the possibility of any funds coming from the state government kitty is non-existent as well.

Given the scenario, National Thermal Power Corporation officials are hopeful that something positive will emerge from the public sector undertaking's latest proposition of a joint venture. ``If nothing else, it will help Uttar Pradesh State Electricity Board acquire funds fromfinancial institutions which at present are not willing to touch any Uttar Pradesh State Electricity Board project with a barge pole,'' remarked a highly placed National Thermal Power Corporation official.