I t is a matter of great satisfaction that the Rs. 90000 crore liquidity infusion into cash starved DISCOMS of the country under The Atmanirbhar Bharat Abhiyan Scheme as announced by the Union Finance Minister is being availed of by the Union Territory to bail out Jammu and Kashmir Power Development Department of its mounting power liability of Rs.11025 crore. Although the scheme is primarily helping those distribution companies (DISCOMS) which faced demand slump due to the unprecedented crisis of COVID-19 pandemic to pay off their outstanding liabilities, the liabilities outstanding against the Jammu and Kashmir PDD and allied power agencies are fundamentally on account of non – realisation, delayed realisation, staggered realisation and even less realisation of power tariff from the consumers. However, the loan assistance was going to vastly help the UT of Jammu and Kashmir in squaring off its huge power liabilities. The preliminaries in respect of the total amount receivable having already been completed under usual guidelines would pave the way for releasing of other tranches, the first of which amounting to Rs.5580 is in the offing of being received by the Government. With this infusion, the liabilities outstanding as at the end of the second quarter of the year of over Rs.11000 crore would hopefully be cleared . So far so good, the question is what after the full clearance of the current liabilities roadmap has to be prepared to atleast achieve a
agencies in power purchase and distribution proceeds in a year or two. If the available data on the current demand trend of the power is to be analysed, there is a yawning gap between the cost of purchase of power and the sale proceeds or recoveries by as much as by more than 65 per cent. In other words , while there is consistent and gradual spurt in demand for power which has to be purchased , there was no improvement in matters of realising at least the cost price, if not overhead expenses right to the stage of power reaching to the customer or consumer’s door. Not only have voices been raised as to why should the power sector be so pitiably managed and almost always eyes glued towards the Central Government to bail the UT Government out in clearing power liabilities but even the Comptroller and Auditor General , in its reports from time to time, has pointed out glaring deficiencies in managing the power sector, be it in power purchase, planning, operationalisation of guidelines and collection of revenue. The PDD cannot avail of usual discounts offered for making timely payments nor save upon the payment of interest and penal charges for erratic payments mostly made in deferred mode. Needless to reiterate, the UT continues to purchase up to 76 per cent of its power requirement from Central Generating Stations although we are blessed with sufficient hydroelectric power generation potential estimated at 20,000 MW out of which still only 16000 MW is identified. Let us have hopes in the much hyped Ratle Power Project in Kishtwar district, the work on which is going on, aimed at generating 3000 MW of power and expected to be completed and operational by 2023. The position, at least, would be eased to the extent of purchasing as much less power if operational reforms and revamping continue to be in the same unchanged manner even by 2023.
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