Srinagar: Power purchases continue to be a big drain for J&K’s exchequer, as the union territory has spent a whopping Rs 55,254 crore on purchasing electricity from outside power companies in the last 10 years.
As per the official data accessed by Greater Kashmir power purchase bills from outside power discoms have reached Rs 55, 254 crores in the last ten years (2012-13 to 2021-22).
According to data, the J&K government spent Rs 8197 crore on 16207 million electricity units in 2021–2022 while while 14362 million units cost Rs 7047 crore in 2020–21.
In 2019-20, 13345 million units were purchased for a cost of Rs 6987 crore.
Similar to this, power purchases totalled Rs 6561 crore in 2018–19, Rs 4844 crore in 2017–18, Rs 4752 crore in 2016-17, Rs 4803 crore in 2015–16, Rs 4719 crore in 2014–15, Rs 3959 crore in 2013–14, and Rs 3382 crore in 2012–13.
Data also shows that there is an increase in the amount of money spent on purchasing power from outside of J&K.
“J&K pays the central government’s power distribution corporations, and other utilities an average of Rs 7500 crore per year for electricity, while the government only receives a pitiful Rs 3200 crore in annual power tariff payments from citizens, businesses, etc. It means annual power purchase losses of a record Rs 4300 crore. The government is paying 12 to 18 percent interest on the liabilities owed on account of power purchases, which has grown over time to Rs 14200 crore,” said a senior Power department official.
“It is primarily caused by substantial AT&C losses and power thefts, which are depleting government coffers while also denying legitimate customers access to the 24-hour power supply that the government sometimes promises,” he said.
“For years, power theft mainly has resulted in over 56 per cent aggregate technical and commercial (AT&C) losses for both the power distributing companies of Jammu and Kashmir. AT&C losses for Jammu Power Distribution Corporation Limited (JPDCL) in 2019–20 were 50.57 percent, 52.17 percent, and 50 percent, respectively. A staggering 74.06 percent loss was experienced by Kashmir Power Distribution Corporation Limited (KPDCL) in 2019–20, followed by losses of 69.01 and 65 percent in 2020–21 and 2021–22,” said a senior Power Department official.
The J&K government has now set a target to double the Hydropower Generation Capacity in the next 3 years from the existing capacity of 3500 MW.
“In this direction, 5 Mega Hydro-power projects viz Ratle (824 MW), Kirthai-II (930 MW) Sawalakote (1856 MW), Dulhasti-Stage II (258 MW) and Uri-I Stage-II (240 MW) having a total capacity of 4134 MW have been taken up for execution in collaboration with NHPC. The likely investment in these projects is Rs 34882 crore and on completion will make J&K power surplus. The delay in execution of the projects has been eliminated and the pace of execution accelerated,” the official document of the J&K government mentions.
“Ongoing HEPs – Kiru (624 MW), Kawar (540 MW) and Pakaldul (1000 MW) are being developed through Joint ventures. By 2022-23, major civil and electro-mechanical works of these projects will be completed,” it adds.