MUZAFFARABAD, April 21: The Mangla Dam raising project has suffered another blow after the Azad Kashmir government refused to sign an agreement with the federal government in protest against the omission of some agreed points from the agreement draft, it is learnt.

The signing of the agreement by the representatives of the two sides in the presence of AJK Prime Minister Sardar Sikandar Hayat Khan and Federal Minister for Water and Power Aftab Sherpao was scheduled for Thursday in Islamabad. However, it was cancelled after the AJK government conveyed to the minister that it could not endorse the agreement unless it addressed the grievances of Azad Kashmir and incorporated all those points which had been settled earlier.

“Yes we have refused to sign the agreement after we came to know that there was no mention of the settled points in the proposed draft. Rather it contained some controversial clauses,” an AJK official, who requested anonymity, told Dawn.

Official sources said the AJK prime minister had already told Mr Sherpao at a meeting on April 14 that it was not possible for his government to sign the agreement until it incorporated the issues of vital importance.

The minister asked the prime minister to submit the proposals in writing so that those could be incorporated in the agreement, the sources added. The AJK government in a letter to the secretary Kashmir and Northern Areas (Kana) division proposed some amendments pursuant to the decisions taken at the April 14 meeting, the sources said.

One of the amendments proposed that 7,707 people affected by the project who had half an acre or more and could not get alternative land in Punjab, should be compensated at a rate of Rs200,000 after verification by a joint committee.

Another amendment proposed that the Wapda should pay market price (replacement cost) to the owners of the houses and additional 10 per cent should be given above the price. The minimum compensation in all cases should not be less than Rs300,000, irrespective of the covered area, specifications and quality of construction.

Occupied Kashmir refugees settled in the AJK should be given five marla plot free of cost in the proposed new city.

Another amendment said that Wapda, the AJK government and the AJK council should forgo their claims to arrears, over-payment and reimbursement. The Kana division should ensure writing off of the payment made unilaterally by the AJK council to Wapda in June 2000 on behalf of the AJK government.

An insertion at the end of a clause was also proposed which said: “Thereafter future tariff for the AJK shall be fixed by a committee with representatives of the ministry, government and Wapda, headed by secretary Kana division, on the basis of consumption pattern of the AJK, average sale rate and parity with the comparable provinces like Balochistan.”

Omission of a clause providing for taking over of the distribution of electricity by the AJK council was also recommended by the AJK government.

The AJK authorities were taken aback on Thursday after seeing the draft prepared by the ministry which did not have any mention of the crucial issues, mainly the determination of power tariff for Azad Kashmir, provision of net hydel profit, and forgoing of the claims of arrears, over-payment and reimbursement by the AJK government, Wapda and the AJK council, the sources said.