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 (PDD).
Government 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,” he added.
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.
During 2017-18 and 2018-19, the government spent Rs 11000 crore on power purchase. However it recovered only 50 percent electricity tariff from consumers.
Figures reveal that the government has recovered only Rs 1900 crore from consumers against Rs 3700 crore spent on power purchase during 2015-16.
Government is 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.
Another top 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.
The official, 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.