At a time when J&K government is struggling to clear the power purchase liabilities of central power suppliers and its own Power Development Corporation, the State is being asked to shell out Rs 494 crore by the Northern Regional Load Despatch Centre (NRLDC) for different charges including the "deviation costs".
An official document in possession of Greater Kashmir lays bare that the NRLDC has approached the Central Electricity Regulatory Commission (CERC) with a claim that Power Development Department (PDD) owes it Rs 494 crore on account of Unscheduled Interchange (UI) charges, Deviation Settlement (DSM) charges and Reactive Energy (RE) charges.
These submissions were made by NRLDC representatives before a three-member CERC panel headed by Gireesh B Pradhan on February 18.
"The representative of NRLDC submitted that as on 18.2.2016, total Rs 494.80 crore (Rs 174.75 crore towards DSM charges, Rs 5.38 crore towards UI charges and Rs 314.67 crore towards Reactive Energy charges) including delayed payment interest is outstanding against Power Development Department, Jammu & Kashmir," read the documents. "It is further submitted that since August 2015 no payment has been received from the PDD, J&K".
On the other hand, J&K—which was represented by advocate ArifSikandar Mir, S Kaul and Vikas Sharma from PDD— contested the claim during a hearing.
"PDD further submitted that as on date Rs 90.76 crore is outstanding against it towards the deviation charges. He (JK government lawyer) further submitted that recently PDD has paid Rs 65 crore," the document reads.
However, the claim was contradicted by NRLDC, saying "no such amount has been received from the PDD."
After hearing both the sides, the CERC ordered that J&K "should liquidate the outstanding UI dues and other dues towards deviation charges and reactive energy charges in a time-bound manner."
Simultaneously, the power regulator asked the NRLDC and PDD to reconcile the amount paid and amount outstanding vis-à-vis the charges while listing the matter for hearing on March 15.
Pertinently, J&K's power purchase bill is set to touch Rs 7000 crore owing to a huge gap in the cost of power purchased from different sources and the amount realized from consumers.
Governor NN Vohra too had expressed concern over the gap and directed the officials to undertake several measure to increase the revenue generation.
On last Thursday, the State Administrative Council gave its nod for the restructuring of outstanding power purchase liabilities of Power Development Department (PDD) by participating in 'UDAY' scheme and floating of bonds by state government.