Finally, a sigh of relief! Chief Minister Omar Abdullah has assured that there will be no hike in power tariff. For the last few days, Kashmir has been simmering over the reports of a 20% hike in power tariffs during peak hours. From the Opposition to the common man, everyone has been up in arms against the purported power tariff hike. It took a few days for Chief Minister Omar Abdullah to break the silence and put the speculations to rest. Omar, who holds the portfolio of power, also made it clear that there has been no discussion on the electricity tariff hike, let alone his signature on any purported proposal. Earlier, Leader of Opposition Sunil Sharma accused the National Conference of committing `electoral fraud’ by promising free electricity before elections and now burdening the people with a proposed hefty 20 percent tariff hike. Power hike is a very sensitive issue in Kashmir. Smart meter installation has snowballed into a major controversy, with many localities taking to the streets against the government. It was one of the key reasons for the defeat of the National Conference in the Budgam by-poll. The opposition capitalized on this issue, which hit the ruling party where it hurts the most. In fact, the National Conference had promised 200 units of free electricity before the assembly elections last year. It was part of the 12 guarantees promised by the NC in its election manifesto. During the budget session, Chief Minister Omar Abdullah announced 200 units of free electricity, but only for Antyodaya Anna Yojana families. This stirred up the hornet’s nest with the Opposition going hammer and tongs against the government. The timing of power hike rumors could not have been much worse for the Omar government. Still recovering from a poll defeat, the reports about the hike made Omar’s position precarious. Politics apart, the economics of power do not add up. Power is heavily subsidized in Jammu and Kashmir, with domestic tariffs among the lowest in the country. Jammu and Kashmir buys power at Rs 5 per unit and sells it at Rs 2.30 to the domestic consumers. Jammu and Kashmir Power Corporation Limited purchased 20,950.58 million units worth Rs 9,256.62 crore from April 2023 to March 2024. J&K government has spent Rs 75,000 crore on power purchases from FY13 to FY24. To overcome the power crisis, the Ministry of New and Renewable Energy has granted in-principle approval for the ULA model under PMSG: MBY. Under this scheme, Rooftop Solar systems are proposed for 2,22,564 AAY households. It will lessen some burden, but not resolve the crisis entirely. The UT is a landlocked region and depends on water resources for power generation. Power crisis in winter deepens as water discharge drops. Given the harsh winter, power consumption in Kashmir increases. Likewise, power consumption increases in Jammu during summer, given the scorching heat. In the welfare state, no government can hide behind a revenue gap proposition. The state is like a mother that has to feed its people. Therefore, economics can wait, but welfare cannot.
Power relief
