Keep power purchases within budget: Advisory Panel to PDD

NL Correspondent

SRINAGAR: With the government claiming that rising liabilities of Power Development Department (PDD) in Jammu and Kashmir was because of power thefts in the state, the State Advisory Committee on power has said that widening gap in purchasing and revenue generation of power may lead to deterioration in the services of the department.

The members of SAC have submitted a report to State Electricity Regularity Commission where they have suggested that power purchase should be restricted to the earmarked budget and said PDD should increase in 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 tariff shock to the consumers.

The members of the SAC believed that the widening gap in power purchase and revenue generation may also result in deterioration in the services provided by the PDD.  The power liabilities of Jammu and Kashmir have gone upto hundreds of crores and has been 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 tariffs against the power purchases.  “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 there is a potential of generation of 20,000 MWs in the state.

According to the official details, the PDD realized the revenue of Rs 1527 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 the PDD had set revenue target of Rs 3344 crores but realized the revenue of Rs 1714.