Sanjeev Pargal
JAMMU, Sept 6: The Government is going to spend an all time high Rs 3500 crore, Rs 400 crore excess from the budgetary provision, on purchase of electricity during current financial year, which was expected to keep the deficit between power purchase bill and revenue generated to nearly Rs 2000 crore.
The Government had kept a budgetary provision of Rs 3100 crore on purchase of power during current financial year of 2012-13.
Official sources told the Excelsior that all indications now pointed out that power purchase bill was all set to touch or cross Rs 3500 during current fiscal year as the State had been left with no option but to purchase excess power due to hue and cry in both the regions on account of power shortage.
Despite mobilizing all resources, the State had hardly managed to earn a revenue of Rs 1203 crore (Rs 1000 crore as electricity charges and Rs 203 crore as electricity duty) from power supplied to consumers during the financial year of 2011-12. This year too, the Government was not expecting any miracles notwithstanding the introduction of Voluntary Load Disclosure Scheme.
‘‘At the best, we can generate a revenue of Rs 1500 crore including electricity duty. This too would leave a heavy loss of Rs 2000 crore on account of power purchase, which would touch Rs 3500 crore’’, sources said, admitting that collection of even Rs 1500 crore worth revenue was a very tough option though the Government had fixed a target of about Rs 2000 crore for the Power Development Department (PDD).
During last financial year, the Government had purchased electricity worth Rs 3100 crore and earned a revenue of Rs 1203 crore leaving a deficit of about Rs 1900 crore. For current financial year, the Government had kept budgetary provision of Rs 3100 crore for power purchase. The provision was expected to go up by Rs 400 crore and stand around Rs 3500 crore.
The Government had projected a demand of power reforms grant worth Rs 2000 crore before the Planning Commission of India for three years on the ground that the State had initiated a series of reforms including installation of electronic meters, increase in tariff, reduction in Transmission and Distribution Losses and introduction of Voluntary Load Disclosure Scheme etc.
The Planning Commission was yet to convey its decision on the demand raised by the State. Sources, however, said the demand was unlikely to be met as the Planning Commission anticipated that more States could raise similar demand.
It may be mentioned here that during the tenure of former Chief Minister Ghulam Nabi Azad, presently Union Minister for Health and Family Welfare, the State had been granted special power reforms grant worth Rs 1300 crore per annum for a period of three years (2006-07, 2007-08 and 2008-09). The grant was stopped after three years.
It may be mentioned that a high level delegation of the State in its meeting with the officials of the Planning Commission of India had apprised the Planning Commission that the State’s power revenue was also increasing but a big gap remained between power bill and revenue as it can’t initiate all reforms in one go.
‘‘It was in view of this that the State Government had also batted for annual power reforms grant to the tune of Rs 2000 crore for few years till the State managed to bring reforms and improve its revenue base’’, sources said, adding that the Planning Department had assured to give a thought to the State’s demand.
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