J&K’s power liability has accumulated to Rs 12,500 crore. The government owes major portion of this amount to outside power companies.
NHPC and NTPC are major power suppliers to J&K.
According to officials, the concern from the Power Department is the high rate of interest, 18 percent, being charged by the supplier companies.
“About 1.5 percent compound interest per month is being charged by the outside companies on the outstanding amount,” a senior government official said.
He said that of the total Rs 12,500 crore liability, Rs 2000 crore is actually the interest for non-clearance of bills on time.
Official sources informed Greater Kashmir that the Power Department owes Rs 8,000 crore to outside power supplying companies, while the power bill of J&K Power Development Corporation is pegged at an estimated Rs 4,500 crore.
An official said that in the last year budget, J&K had kept a provision of Rs 6,000 crore for power purchase but the revenue generated through tariff was just Rs 2250 crore.
The erstwhile J&K state had incorporated a separate corporation namely J&K Power Trading Corporation to give a “professional touch” to power purchases from outside J&K.
Chief Engineer of the corporation, Er Muhammad Yusuf Baba confirmed that the liabilities have gone above Rs 12,000 crore.
In order to meet power demand, J&K enters into “arrangements” with NHPC, NVVN, Punjab, Haryana, Chhattisgarh and “arranges” Power Trading Corporation (PTC), NTPC, Vidhyut, Vyapar Nigam LTD, besides overdraws from Northern Grid.