Advisor to Governor, KK Sharma on Monday met Union power and new & renewable energy minister RK Singh in New Delhi and discussed various issues relating to the raising of power bonds in order to address difficulties being faced by the state in not being able to pay its power purchase liabilities.
During the meeting, advisor requested the union minister to enable the state government to raise power bonds to clear state's outstanding power purchase liabilities, which have swelled beyond Rs 8,000 crore, according to an official spokesperson.
Advisor Sharma highlighted that this measure will help state government to liquidate all the power purchase liabilities of the CPSUs.
The advisor also mentioned that various steps have been taken by the state government towards power reforms in the state. Recently in the SAC meeting chaired by J&K Governor, the financial re-structuring of JKSPDC has been approved to make the power sector eligible to raise loans and improve balance sheet of the JKSPDC. This will help in corporate borrowings to complete the new power generation projects in the state.
The power department recently formed JK State Power Trading Corporation that will deal with making instant payments of power purchase bills using Letter of Credit facility etc with an arrangement from J&K Bank that will make power cheaper in the state.
The union minister appreciated the situation of the power sector and assured full support in obtaining Govt of India approvals to the proposal submitted by the state government.
Union power secretary, AK Bhalla and Hirdesh Kumar Singh Commissioner Secretary PDD were also present in the meeting.