Gap between power purchase, revenue generation causing loss of Rs 4000 cr annually to J&K, Sep 8, 2021

Posted On : November 09, 2021

Power losses in Jammu and Kashmir have alarmingly mounted to Rs 4000 crore per year prompting Lieutenant Governor Manoj Sinha to direct the Power Development Department to reduce deficit by 10 percent within the next three months.

“The Jammu and Kashmir is suffering heavy losses due to gap between electricity purchase bill and revenue generation,”  reported a newspaper quoting official sources

The Government has to purchase electricity worth Rs 6500-6600 crore every year. Against this, the Government is generating revenue of only Rs 2600 crore.

“J&K has highest power losses in the country which the Government is trying to reduce. Target has been given to the Power Development Department to reduce this by 10 percent in three months,” sources said.

Pointing out that in the last 70 years, only 3,500 MWs capacity of electricity was installed, sources said Jammu and Kashmir is a power-deficit region. The Government has, however, signed a Memorandum of Understanding (MoU) with the National Hydro-electric Power Corporation (NHPC) on the Sawalakote power project. It is being constructed since 1984 and has not been completed in 46 years. Now the Government is confident that it will be completed in the next five years.

“Whatever power generation capacity was built in the last 70 years, the Government will be doubling it in five years. It will be producing electricity of 3,400 MWs capacity in 4-5 years. After that, there will be no power problem in J&K,” sources said, adding the hydropower is not reliable during peak hours so the UT needs alternate sources of energy.

“The Government has signed MoUs for solar power,” they said.