‘No option but to carry out reforms’
Tarun Upadhyay
JAMMU, Sept 6: Principal Secretary Power Development Department H Rajesh Parsad today said power sector reforms in Jammu and Kashmir , of which smart meters are one of the components, are not only fundamentally important for quality and affordable power supply but also to get central financial assistance in purchasing power.
click here to watch video
In an interview with Excelsior News , he said these reforms are needed to get Central assistance under different power sector schemes and if they are not carried out, J&K will be looking at the possibility of blackout.
“Power Reforms are needed for industrialization and developing tourism sector which will provide employment. If these are stalled or shelved than future generation of J&K will not spare us,” he said.
The Principal Secretary said there is not an iota of truth in the rumors that smart meters are generating inflated bills. On the contrary, these are giving accurate reading and unlike old meters these are consumer friendly and will also guide consumer to consume power in a judicious manner, he added.
Parsad said the objective of the Government is to overhaul power sector and foster economic development and for this installing smart meter which is one of the components of the overall reforms is necessary to meet and address the challenges of power generation, transmission, distribution, measurement, for ensuring a reliable and affordable 24×7 power supply in the Union Territory .
“Smart meters, the modern metering instruments for measuring power consumption, have become mandatory. Under the Late Payment Surcharges (2020) rules money has to be given in advance to purchase power and unless we do that the power generators will not provide power,” he said.
He said last year 20,400 million power units were supplied in J&K. The Aggregate Technical & Commercial losses (AT&C) in J&K are 55%, which is highest in the country. The plan is to reduce them annually by 15 % . The collection also has to be increased .
Prasad said only when these reforms are carried out and target achieved, J&K will get Central financial assistance under different schemes.
“In many States AT&C losses are less than 10% but in J&K they are 55% which makes power infrastructure development a pressing concern.”
Prasad said the smart meters are expected to play a pivotal role in achieving these objectives. He said while the power unit rate in J&K is lowest in the country, it is crucial for consumers to pay their bills so that the Government is able to provide power at affordable rates.
“Power tariff is lowest here. For consumer consuming between 200-400 units the rate is Rs 3 per unit and if one consumes more that 400 units the rate Rs 3.80 per unit, in other States this is about Rs 7 per unit.”
He said there has not been any increase in power tariff rate from 2016-2022. Only last year it was increased by 8% . “Just 8% increase in last 7-years in real sense is not an increase if we take into account inflation and also that cost of other factors for power generation and transmission have increased much more”.
The Principal Secretary Power said though J&K has abundance of water resources and the total power generation capacity of hydel projects is 1200 MW but these are insufficient to meet power consumption during winter as their production dips by 65% in this period. He said consequently, the J&K has to purchase power from the exchange at higher rates which varies from Rs 4 to Rs 12 per unit.
“Govt’s intention is not to make profit. There is gap between cost of purchase and billing and because of it J&K is suffering losses of 55%”, he said.
Prasad said more than 50% consumers are not metered. The plan is to install 22 Lakh smart meters and till now 4 lakhs have been installed . “In the last 4-yr power infrastructure capacity has been increased by 50% with massive investment . There is dire need to modernize power infrastructure.”
“Under PM Special Package, Rs 4500 cr investment was done in power sector. Since 2015, under Revamped Distribution Sector Scheme (RDSS) Rs 12000 cr were sanctioned for infrastructure improvement and out of which Rs 5000 cr has been received as first installment.”
He said once the first installment is utilized it will be audited and since its outcome is linked to reforms so unless these are not carried out the second installment will not be released.
He said the outstanding arrears of loan on account of purchase of power is Rs 31,000 crore. “This loan has to be repaid . Unless this is done there will be a scenario where the Government’s job will be reduced to purchase power and sell it at a loss. It won’t have money to carry out other activities. So there is no other options than to carry out these reforms.”
” We are managing till now but loan has to be repaid eventually. Govt can’t repay this much amount on its own and for it billing and payment by consumer is fundamentally necessary and mandatory too”.
The Principal Secretary said failure to implement these reforms could lead to blackouts, hinder industrialization and tourism growth, and impede employment opportunities.
He said there reforms are needed so that J&K gives its 10 % share in Central Government schemes of Rs 12000 crores which are 90% funded and it’s our duty to mobilize these funds. “If it’s not done future generation will not spare us. The reforms are needed for economic development and for this peoples ‘ cooperation is needed .”
Follow our WhatsApp channel
