Reorganisation of PDD: JKSPTC to inherit Rs 8000 Cr liability
Srinagar, Dec 21: Newly
constituted J&K State Power Trading Corporation Limited (JKSPTC) will
inherit whopping Rs 8000 crore liability from the Power Development Department
recently reorganized the PDD into JKSPTC to cut down the recurring losses in
Jammu and Kashmir. “JKSPTC has to
create its own revenue model. Several measures are being taken to make JKSPTC
financially viable,” said an official.
The official said
there is more than Rs 3000 crore power generation gap in the new UT. “We owe
money to National Hydro Electric Power Corporation (NHPC) and J&K Power
Development Corporation (PDC). Liabilities of PDD have mounted to Rs 8000
crore,” he said.
The official said
PDC wrote to PDD several times to clear its liabilities but to no avail.
“Different expert committee reports have already alerted the government that
widening gap in power purchase and revenue generation may affect the services,”
Data accessed by
The Kashmir Monitor reveals that for the last 10 years, Jammu and Kashmir
government has purchased power for Rs 40,000 crore from various companies.
and 2018-19, the government spent Rs 11000 crore on power purchase. However it
recovered only 50 percent electricity tariff from consumers.
that the government has recovered only Rs 1900 crore from consumers against Rs
3700 crore spent on power purchase during 2015-16.
expecting to recover Rs 3000.96 crore against the target of Rs 6000 crore in
the current fiscal.
To reduce the
revenue generation gap, authorities have also decided to expedite the
installation of metering process and set 2021 deadline for its completion.
official said JKSPTC may borrow loans from banks to clear liabilities. “The
Corporation is no more longer dependent on exchequer. It has to create its own
resources,” he said.
however, noted that there was no need for JKSPTC to seek approval from any
regulatory body about the hike in power tariff. Earlier the PDD had to seek
approval from State Electricity Regulatory Commission for hike in power tariff.