Sanjeev Pargal
JAMMU, July 14: As the State Government’s budget has already been hit badly by the less annual plan for 2013-14 than projected, it was expecting more trouble with power purchase bill also expected to surpass budgetary provision of Rs 3579 crores by about Rs 700 crores to Rs 800 crores.
Official sources told the Excelsior that though the revenue generated by the Power Development Department was also increasing every year significantly, the increase in power purchase bill was more than revenue. The Government was anticipating that the purchase bill could stand 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 Power Development Department (PDD) had generated Rs 1450 crores worth revenue last fiscal resulting into net less of about 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 of 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.
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 2340 crores. The Department could fall short of target by about Rs 400 crores 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.
“In any cost, the Government had to bear losses around Rs 2500 crores, similar to the amount of last year, on account of providing electricity to the people. An increase of Rs 400 crores in the revenue wouldn’t matter as power purchase bill would also go up by an equal amount,’’ sources said.
The Government has already directed the Power Development Department to stop electricity supply to all Government Departments and Public Sector Undertakings (PSUs), which didn’t have installed the meters.
“There would be no power supply to any Government Department and PSU, which didn’t have the electronic meters’’, sources said, adding the Government has also directed its all Departments to clear power arrears, which they owed to the Power Development Department from their budgetary resources.
A number of Government Departments owed hundreds of crores of rupees to the PDD, sources said, adding if the dues are cleared, the PDD’s revenue realization would improve drastically.
Worthwhile to mention here that during Ghulam Nabi Azad regime in Jammu and Kashmir, the Central Government had given Rs 1300 crores per year power reforms grant to the State for three consecutive financial years including 2006-07, 2007-08 and 2008-09 to cut power losses.
However, even the power reforms grant had failed to reduce the losses, which kept on increasing mainly due to very less revenue realization as against the power purchase bill.
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