Excelsior Correspondent
JAMMU, June 19: Union Minister for Power Piyush Goel has approved Rs 616 crores for Jammu and Kashmir under ‘Power for All’ scheme, launched by the Government of India, whose target has now been fixed as the Year 2019 even as the Minister has raised concern over huge 78 per cent AT&C (Aggregate, Technical and Commercial) losses in power sector in the Kashmir valley and directed the State Power Ministry to drastically reduce them.
The Union Power Minister has also asked the State Government to issue bonds worth Rs 3413 crores as agreed upon between Centre and State to wipe out about Rs 7000 crores worth power liabilities. The bonds were likely to be released after budget session of the Legislature, which will end on June 30.
Official sources told the Excelsior that in a meeting with Deputy Chief Minister Dr Nirmal Singh, who also holds charge of Power Development Department (PDD), Piyush Goel, has approved Rs 616 crores for Jammu and Kashmir as first installment under the Scheme `Power for All’ by 2019 and assured to release remaining amount after receiving Utilization Certificates (UCs) of amount to be release in Phase-I.
The Jammu and Kashmir will get a total amount of Rs 1200 crores under `Power for All’.
Sources said the Centre Government has revised the target `Power for All’ to 2019 instead of previous 2022. Under the scheme, entire population of the country would get power. All un-electrified and de-electrified villages would be covered under the scheme.
Goel has also asked Dr Nirmal Singh to go for issuance of public bonds worth Rs 3413 crores, as agreed upon in a Memorandum of Understanding (MoU) signed between Centre and State, immediately to completely wipe out liability to the tune of Rs 6950 crores on account of electricity purchase bill etc.
Confirming this, Dr Singh said the PDD will issue public bonds to the tune of Rs 3413 crores soon after completion of budget session of the Legislature on June 30.
“The formalities for issuance of the bonds are being completed,” he said, adding that the State would save Rs 200 crores to Rs 300 crores worth interest on power liabilities by issuing the bonds,” Dr Singh said.
The Centre has already sanctioned one time grant of Rs 3537.55 crores to the State to meet the liabilities and issue public bonds for remaining amount. The State Government would be getting Rs 3537.55 crores from the Union Government to meet the power liabilities. The State would go for public issues of the remaining amount to liquidate the liabilities and start afresh on the power front.
The present liabilities of Jammu and Kashmir on account of electricity stood at Rs 6950 crores. With Union Government agreeing to give Rs 3537.55 crores worth one time grant to the State Government under UDAY, the liabilities will be reduced to Rs 3413 crores.
The Power Development Department of the State Government will then go for issue of public bonds worth Rs 3413 crores at nominal interest rates to completely wipe out the liabilities of the State on account of power purchase bill, which had been piling up over the years and had, at present, reached an all time high at Rs 6950 crores, creating major financial burden for the State.
According to sources, the Union Power Ministry has taken serious note of huge 78 per cent AT&C losses in the Kashmir valley, which has become a major headache not only for the State Government but also the Centre. The similar losses in Jammu region were 42 per cent.
Goel has asked the State Government to take harsh steps to control 82 per cent AT&C losses in the Kashmir valley immediately and drastically to bring it at par with Jammu region.
Sources said during the meeting with Piyush Goel, Dr Nirmal Singh sought transfer of two NHPC-run power projects of Dul Hasti and Uri to the State Government as this demand formed part of not only the ‘Agenda of Alliance’ (AoA) but were also recommended earlier by the C Rangarajan Committee. He also sought compensation for J&K from the NHPC profits in view of losses suffered by the State due to Indus Water Treaty (IWT).
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