Sanjeev Pargal
JAMMU, Dec 5: In view of pressure from the Planning Commission of India to reduce widening deficit between power purchase bill and revenue realized from consumers on account of power supply and increased demand of electricity, the State Government has revised the revenue target assigned to the Power Development Department (PDD) from Rs 2340 crores to Rs 2800 crores for current financial year of 2013-14.
The revenue target for 2013-14 was nearly double than the amount realized by the PDD during last financial year of 2012-13 when it had collected Rs 1450 crores as against Rs 1900 crores worth target.
Official sources told the Excelsior that increase in the electricity revenue was necessitated not only in view of the Planning Commission guidelines but also the losses the State Government was suffering on account of power purchase every year, which were likely to increase this year if the PDD was unable to meet the target of revenue realization.
The Planning Commission has already asked the State Government to reduce ever mounting deficit between power purchase bill and revenue realization, which during the last financial year stood at Rs 2550 crores. The Government had incurred Rs 4000 crores for purchasing electricity from different resources including Northern Grid but realized only Rs 1450 crores worth revenue.
The Planning Commission has cautioned the State Government that it would be forced to take some “drastic steps” like cut in the plan amount and some Centrally Sponsored Schemes linked to power projects if the State didn’t increase its revenue.
“In view of the Planning Commission directive as well as mounting losses on account of power purchase, the Government has revised the revenue target given to the PDD at the start of current financial year of 2013-14 from Rs 2340 crores to Rs 2800 crores i.e. an increase of Rs 460 crores,” sources said.
The PDD officials were of the view that even Rs 2340 crores worth revenue target was too much as compared Rs 1450 crores generated in the last financial year. The revised target is an uphill task, they added but said the Department was trying to generate as much revenue as possible but it would definitely fall well short of target.
Sources said increase in revenue notwithstanding, the Government expected the power purchase bill during current financial year around Rs 4300 crores to Rs 4400 crores much more than budgetary provision of Rs 3579 crores.
During 2012-13, the Government had kept budgetary provision of Rs 3100 crores for purchasing electricity from different resources mainly Northern Grid to meet the shortfall in the State. The budgetary provision was subsequently revised to Rs 3875 crores but it ultimately stood at Rs 4000 crores i.e. Rs 900 crores more than the budgetary provision.
Against this, the PDD had generated Rs 1450 crores worth revenue last fiscal resulting into net less of Rs 2500 crores to the State.
During current financial year, the Government has kept budgetary provision of Rs 3579 crores for power purchase notwithstanding the fact that it had purchased power worth Rs 4000 crores last year. With increase in electricity cost as well as demand, the Government was anticipating that it would have to revise the budgetary estimates for power purchase and the bill could go up to Rs 4300 crores or Rs 4400 crores.
As against Rs 1900 crores worth target given to the Power Development Department in the last financial year of 2012-13, it had been able to generate Rs 1450 crores. Despite this, the Government has fixed a virtually “non achievable target” of Rs 2340 crores for the PDD for current financial year of 2013-14, which now has been subsequently revised to Rs 2800 crores, sources said.
Though the PDD has been increasing the revenue on account of power every year, the sources observed that it was not only difficult but virtually impossible for it to meet the target of Rs 2800 crores. The Department could fall short of target by about Rs 800 crores (keeping the present trends in view) despite increase in electricity charges, slight reduction in Transmission and Distribution (T&D) losses, covering more areas under electronic meters and taking other measures to increase revenue and curb the losses.
Worthwhile to mention here that the Government has already directed the PDD to stop electricity supply to all Government Departments and Public Sector Undertakings (PSUs), which haven’t installed the meters so far.
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