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| Darker days ahead for J&K due to widening gap between power purchase, revenue collection increases | | | Majid Nabi
Early Times Report
Srinagar, Nov 30: The erratic power supply might get worsen in the coming months in J&K due to the rising liabilities of Power Development Department (PDD) in view of the widening gap in purchase and revenue generation.
This was mentioned by PDD in a recent petition filed before the State Electricity Regularity Commission.
The members of SAC have suggested that power purchase should be restricted to the earmarked budget stating "PDD should increase tariff marginally every year to recover at least the incremental cost rather than increasing the tariff in one go at a later stage which may result in a shock to the consumers". They believed that the widening gap in power purchase and revenue generation may also result in deterioration in the PDD services. The power liability of J&K has gone up to Rs 7,000 cr and has increasing with each passing month.
An official of PDD said the increasing liability was because of the shortfall in revenue generation on account of collection of power tariff against the power purchase. "The PDD has failed to meet its target of revenue collection from the consumers. There is a widening gap between power purchase bill and revenue generated from supply of electricity to the consumers," he said. During the last one decade, government has spent Rs 22,000 crores on purchase of electricity despite the fact there is a potential of generation of 20,000 MWs of power in the state. According to the official details, the PDD realized the revenue of Rs 1527 crores in 2014-15 against the target of Rs 3508 crores. The state purchased power of Rs 3000 crores during 2011-2012 and there was Rs 1993 crores power revenue deficit. During 2013-2014, power worth Rs. 3870 crores was purchased thus facing a power revenue deficit of Rs 2281 crores. For 2013-14, PDD had set the revenue target of Rs 3344 crores but realized the revenue of Rs 1714 only.
Sources said in a recently held meeting headed by Chief Minister Mufti Mohammad Sayeed, the government decided it would issue public bonds worth Rs 7000 crores to liquidate liabilities on account of power purchase bill.
This will be for the first time when the PDD would issue public bonds to cope up with the liabilities. |
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