Arteev Sharma
Jammu: Amid ongoing clamour against the recent electricity tariff hike, Jammu and Kashmir government today said that it still has to bear over Rs 4500 crore as power subsidy to bridge the revenue deficit of the Distribution Companies (DISCOMS) while ruling out any proposal to revoke the revised tariff.
The government also disclosed that Rs 8,583.05 crore was outstanding in power arrears from domestic consumers, commercial establishments and government departments (both UT and central), indicating the massive revenue-collection gap faced by the power sector.
Of the total outstanding amount, domestic consumers account for Rs 4,385.41 crore, while commercial establishments owe Rs 1,727.51 crore. The government departments have accumulated arrears of Rs 2,470.13 crore. The recent power tariff hike will add only Rs 251 crore to the government exchequer.
The figures were disclosed by the Minister in charge of the Power Development Department in a written reply to a question raised by Congress MLA Irfan Hafiz Lone, representing Wagoora-Kreeri constituency, in the Legislative Assembly on Friday.
“Despite this meager revision of tariff, the Government has to still bear more than Rs 4500 crore as power subsidy to bridge the revenue deficit of the DISCOMS, excluding their revenue expense. The tariff is revised by a statutory regulator viz JERC (Joint Electricity Regulatory Commission) after due consideration of annual revenue requirement (ARR) and other incidentals of the DISCOMs”, the minister said.
The minister further said, “The tariff revision was long overdue necessitated to bridge the gap behveen average revenue realized per unit. The revision of power tarifF is a regulatory process by way of filling of tariff petition by DISCOMs before the JERC which involves all stakeholders while finalizing tariff order. The tentative addition revenue anticipated to be realized by DISCOMs on account of tariff revision, as approved by JERC, shall be Rs 251 crore (for FY 26-27)”.
On the demand for a general power amnesty, the government said the proposal was being examined by the department “on merit”. However, it clarified that the subsidised tariff applicable to AAY/BPL consumers had not been increased under the tariff order for 2026-27.
In another query, the government said there was no proposal to take up with the Centre the issue of return of power projects to Jammu and Kashmir as of now.
“However, Sawalkot (1856 MW), Uri-I (Stage-II) (240 MW) and Duthasti (Stage- II) (260 MW) Hydroelectric projects were entrusted to NHPC for implementation on BOOT basis for a period of 40 years, in pursuance with MoU signed between NHPC and JKPDCL on January 3, 2021,” the department said.
“Agreement for handing-over/ taking-over of Sawalkot HEP (1856 MW) was signed between NHPC and JKPDCL on December 11, 2021, and NHPC has taken-over the project for implementation on BOOT basis for a period of 40 years. The project is at present in process of appraisal/ approvalby Government of India,” it said, adding “Implementation agreement between NHPC and IKPDCL has been signed on March 27, 2026 for implementation of Uri-I Stage-II HEP on BOOT basis for a period of 40 years. The project is under construction. The project is under construction. Accordingly, the projects shall be handed-over to J&K after 40 years from the date of commercial operation of the projects”.
Pertinently, the total power generated in the UT of J&K including NHPC Projects is around 3540 MW till now.
