Dr Varinder Sharma
Jammu and Kashmir, a region blessed with abundant water resources, has long been recognized for its potential in hydroelectric power generation. Despite this natural advantage, the UT finds itself grappling with a severe and persistent power crisis. Despite being one of the earliest state of pre-independence era to opt for electrification and hydro-electric project yet J&K seems to have missed the opportunity. The history of power generation in Jammu and Kashmir dates back to the early 20th century, when Maharaja Hari Singh, the last ruling Maharaja of the princely state, established the region’s first power plant in 1905 at Mohra. However, despite early efforts, J&K has struggled to become self-reliant in power generation. Certain sections blame the Indus Water Treaty with Pakistan, which limits the exploitation of the region’s rivers. But practically, the power crisis in Jammu and Kashmir today is not merely a result of historical challenges but also of contemporary failures at multiple levels, plagued by a myriad of issues, including project delays, financial mismanagement, corruption, and outdated infrastructure.
There is a common belief that the completion of new hydro-electric projects will significantly improve the power situation. However, the reality is that J&K’s share of electricity from these new projects is initially a mere 2%, gradually increasing to only 10% to 12% over the years. Meanwhile, the region’s power demand is growing at an exponential rate of 5% to 7% annually, making it clear that J&K’s allocated share will never be sufficient to meet the increasing demand. Currently, there is a significant disparity between peak demand and the power supplied by JKPDCL. With more than 50% of electricity being lost due to inefficiencies and the inability to collect substantial revenue and subsequently unpaid DISCOM bills, JKPDCL is in no position to purchase enough electricity from the National Grid to meet demand. The GoI has been providing substantial subsidies, amounting to thousands of crores, to cover these deficits and prevent a total collapse of the power supply to consumers.
Another contributing factor is the frequent delays in power project implementation. These delays often result in substantial cost overruns. Such delays also contribute to energy shortages. Moreover during winter, when river flows decrease, the region’s hydroelectric plants produce significantly less power, exacerbating the shortfall. The inability to procure additional power from the national grid due to financial constraints further worsens the situation.
The infrastructure supporting Jammu and Kashmir’s power sector is woefully inadequate. Grid stations and substations have been augmented over the years, but the staffing levels remain far below the required strength. With many divisions and subdivisions operating without full-time heads, decision-making is delayed, and maintenance work is often neglected. The unbundling of the Jammu and Kashmir Power Development Department (JKPDD) into corporations in 2019 was intended to streamline operations, but the lack of coordination and staff shortages have rendered this move ineffective.
The AT&C losses in Jammu and Kashmir are alarmingly high, operating above 50% losses. These figures are well above the national average, reflecting inefficiencies in billing, collection, and distribution. The low rate of metering exacerbates these losses, as many consumers are billed on flat rates, leading to excessive and wasteful consumption. While KPDCL is conducting surprise checks for power theft and subsequently sharing the details through social media, but such actions are missing in Jammu Division. It is obvious that in smart metered areas linemen and meter readers are hand in glove in power theft yet, JKPDCL has not taken any action against employees who facilitate power theft, even in areas with smart meters. This situation is critical and needs immediate attention.
Moreover, over the past two decades, J&K has been caught in a never-ending metering process. It began with a goal of 100% metering using analog meters, which were subsequently replaced by digital meters, then upgraded to more advanced digital meters, and now to smart meters. Surprisingly, each replacement has occurred in areas that were already metered. Additionally, a project to install small distribution transformers for clusters of houses was implemented. Despite spending crores on these metering experiments, JKPDCL has failed to achieve 100% metering. On the other hand, JKPDCL has also failed to meter the respective Sub-Transmission Divisions and to hold its staff accountable for revenue collection. Despite staggering losses, the department has no concrete plans to address these issues. One of the major area of concern is that there has also been no practical augmentation of Sub Transmission Divisions. Household loads have not been revised for years, resulting in a lack of accurate data on actual power consumption in various areas. Without this data, no effective planning is being done to upgrade distribution transformers, leading to overloaded transformers and unscheduled power cuts. Resultant extreme voltage fluctuations lead to major damages to the household electronics items. Unfortunately, this issue has been neglected, and frequent transfers of top officials, including the MD, have further exacerbated the problem. Pending bills for months together is another glaring lapse on the part of JKPDCL. Although app-based billing was introduced with much fanfare, it has since been stop and go situation. In the process, consumers get huge bills of months together which they are unable to pay timely. This raises the question of how long this unsustainable situation can continue. Corporations are expected to generate sufficient revenue to sustain their operations, yet JKPDCL has repeatedly fallen short.
Electricity, a basic necessity of daily life, remains inadequately supplied by the authorities. The strategy of hiring retired officials from Power Grid or other PSUs has proven ineffective, as these top officials are often disconnected from the on-the-ground realities. While significant funds have been invested in augmenting power transmission, power distribution at the consumer level continues to be a major challenge. Corruption within the power sector is another critical issue. Despite recommendations from the ACB for action against delinquent officials in number of cases, the lack of accountability and transparency remains a significant hurdle. The delay in implementing new power projects hampers progress towards cleaner energy options, undermining the region’s environmental goals. It is evident that these power corporations are grappling with multiple issues, and unless the administration takes stringent measures, the power woes in Jammu and Kashmir will persist.
The GoI has been providing subsidies year after year to alleviate these problems, but this practice cannot continue indefinitely. Authorities must understand that the power crisis has far-reaching consequences beyond mere electricity shortages. Industries facing frequent disruptions, reducing their competitiveness and hindering economic growth. The tourism sector, a vital part of the region’s economy, is also adversely affected, as power outages discourage visitors and disrupt services. Moreover, the public, especially in rural areas, endures prolonged blackouts, impacting daily life, healthcare, and education. The situation is so grim that even on national days and religious festivals there are extensive cuts. Despite assuring J&K and Ladakh HC that Smart Metered areas are getting 24X7 power supply ground reality is totally different.
The power crisis in J&K is a complex issue that requires a multi-faceted approach to resolve. The first step should be improving governance within the power sector. This includes holding officials accountable for project delays, corruption, and mismanagement. Investing in modernizing the region’s power infrastructure is crucial. This includes upgrading grid stations, substations, and transmission lines to handle increased demand.
The Government should also focus on improving the staffing levels in the power corporations to ensure proper maintenance and operation of the infrastructure. While J&K’s hydroelectric potential is significant, the region must diversify its energy sources to renewable energy sources like solar and wind power generation. To overcome financial constraints, the government must work on AT&C losses on priority and improve revenue collection. The existing power purchase agreements must be renegotiated with better terms with power producers, including those in the central sector, to secure a larger share of generated power and reduce its dependency on external sources.
The power crisis in J&K is a symptom of deeper systemic issues that have been allowed to persist for far too long. The UT Government, along with the Central Government, must take bold and decisive actions to restore the region’s power sector to health. Given the past experiences and the current situation, there is a growing argument for privatising the entire power sector. In numerous cities across India, private companies have successfully managed power distribution. Transitioning to a Public-Private Partnership (PPP) model, with the Government acting as a facilitator, could be a viable solution. While some may argue that this would lead to higher per-unit costs for consumers, the current expenses incurred on generators, inverters, solar panels, and other alternatives already exceed what private operators might charge. Sooner or later bitter pill has to be swallowed, the sooner-the better it will be.
(The writer is Co-convenor Professional Cell J&K BJP)
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