J&K set to receive Rs 11,000 crore to clear all power liabilities
Srinagar: In what is dubbed as a great relief for the power sector in Kashmir, the Jammu and Kashmir government has liquidated a whopping Rs 11,000 crore of power purchase liabilities by signing a Memorandum of Understanding with Power Finance Corporation and REC limited..
The move was made possible after the authorities took advantage of Atmanirbhar Bharat Abhiyan (ANBA).
According to officials, the MoU signing ceremony was presided over by Principal Secretary, PDD and Information departments, Rohit Kansal.
They said that under ANBA, J&K was sanctioned a loan assistance amount of Rs 11024.47 crore against liquidation of power purchase liabilities.
“After signing of this MoU the first tranche of Rs 5580 crore would be disbursed instantly and the rest amount in second tranche shortly after spending the released amount,” the officials said.
The loan amount is jointly provided by RECL and PFC India under Atmanirbhar Bharat Abhiyan. Once released the entire liability of power will be liquidated.
Officials added that that the move will substantially help in improving the optimum power purchasing mechanism in J&K besides better power management here.
The agreement for this arrangement was signed between Ali Shah, CGM, PFC Limited and Ajay Kumar, CPM, REC Limited on behalf of their organisations and Mohammad Sultan Malik, Director Finance, PDD and Mohammad Yousuf Baba, Chief Engineer, J&K Power Corporation Limited on behalf of government of J&K.
MD, KPDCL, Mohammad Ajaz Asad; Chief Engineer, KPDCL, Aijaz Ahmad Dar; Chief Engineer, Projects, Javaid Yousuf Dar; Secretary Technical PDD, Bashir Ahmad Dar and other officers of the department.
Ravinder Singh Dhillon, CMD, PFC; SK Gupta, CMD, REC; Yasha Mudgal, MD, JPDCL; PK Singh, Director Commercial, PFC; R. Laxmanan, Executive Director REC; Manoj Sinha, Executive Director, PFC joined the ceremony through a video link.
Kansal complimented the corporation officials for making it happen within the shortest possible time. He asked them to extend full cooperation to J&K for realising its potential of making J&K a power surplus territory.
The Principal Secretary also commended the PDD officials for working tirelessly to achieve this historic milestone. He said that after receiving the entire loan amount J&K will be able to liquidate the whole liability.
Kansal also advised the distribution companies to work continuously to cut the losses so that liabilities to department do not accrue again. He asked them to take optimum benefit from Centrally Sponsored Schemes for slashing the AT&C losses so that the maximum supply reaches to consumers.
He further asked the officers to work in tandem with each other so that whole amount is disbursed within the set timeline. He urged them to invest the resources and potential spared by this step in making J&K a self-sufficient in electricity.