NAVVNEET DUBEY
Jammu: Jammu and Kashmir’s power sector continues to strain the Union Territory’s finances, as its outstanding liability to central and private power suppliers has reached Rs 4,751 crore as of September 30.
Despite possessing one of the highest hydropower potentials in the country-over 20,000 MW-J&K remains a net importer of electricity, incurring massive financial burdens year after year. Moreover while the power purchase bill has increased the revenue realisation has not grown correspondingly.
As per information shared in the recently concluded legislative assembly session in Srinagar in response to a query by Balwant Singh Mankotia the highest dues are owed to the Power Grid Corporation of India Limited (PGCIL) and the National Thermal Power Corporation (NTPC), amounting to Rs 772 crore and Rs 638 crore, respectively.
The reply revealed that that Jammu and Kashmir Power Development Department (PDD) also owes Rs 449 crore to NHPC, Rs 61 crore to the Nuclear Power Corporation of India Limited (NPCIL), and Rs 49 crore to the SJVNL-Nathpa Jhakri project. The liability to the Jammu and Kashmir Power Development Corporation (JKPDC) and the Baglihar Hydroelectric Project (BHEP) together stands at Rs 2,675 crore — the single largest component in the list.
The J&K also owes Rs 100 crore to Jindal Power, Rs 93 crore to RKM Talcher, Rs 92 crore to RKM IB, and Rs 63 crore to JIPTL. The state also owes Rs 101 crore under deviation settlement charges, Rs 51 crore to MEJA, Rs 30 crore to THDC, and Rs 25 crore to SJVNL Rampur. Smaller liabilities include Rs 15 crore each to APCPL (Jhajjar) and Uttar Pradesh PTCL, Rs 10 crore to Punjab and Uttar Pradesh for power banking, and Rs 3 crore to Avaada Sunrays. A few entities like NLC, NTPL, and NTECL have no pending dues.
The significant outstanding liability highlights the challenges faced by Jammu and Kashmir’s power sector, including high aggregate technical and commercial (AT&C) losses and low revenue realization. However revenue from power receipts rose by only about 10% highlighting a widening fiscal gap.
One of our biggest challenges has been the gap between the cost of supplying power and the revenue PDD recovers. While the average cost per unit is Rs 7, department only recovers about Rs 2.5 per unit due to high AT&C losses and systemic inefficiencies. The government is taking steps through smart metering, better billing, and distribution modernisation to bridge this gap and make the sector financially sustainable.
Officials have previously cited low revenue realisation, non-payment by consumers, and transmission losses as key reasons for the widening gap between power purchase costs and recoveries. Moreover government departments, industrial units, semi government organisations and private institutions owe over Rs 1,000 crores to the Power Development Department on the account of electricity dues.
