Low Recovery Rates Force J&K PDD To Seek Loans For Clearing Power Dues
Jammu: The Jammu and Kashmir Power Development Department (PDD) on Tuesday said that J&K is facing challenges with low recovery rates.
In the financial year 2022-23, while the power purchase cost amounted to Rs. 9,886 crore, the collection from the sale of power to consumers was only Rs. 3,652 crore.
Consequently, to clear power dues owed to generating companies, J&K has been compelled to avail loans totaling Rs. 32,000 crore in the past two years alone under liquidity infusion schemes of the Government of India, such as Atmaanirbhar Bharat and the LPS Rules 2022.
"The debt is secured against a mortgage, encompassing all assets of the plant, including the dam, which are pledged to the financial institution providing the loan," a spokesperson of the
PDD said.
Stating that Jammu and Kashmir is the only Union Territory across the country where consumers are still provided electricity without meters, the spokesperson of the Power Development Department (PDD) asserted that the areas 'saturated with smart meters' are experiencing significantly reduced losses and improved power supply.
“Concerted efforts are underway to convert the entire consumer base of Jammu and Kashmir to the modern prepaid metering systems so as to ensure a better power supply”, the spokesperson said while rebutting the misinformation being circulated across the social media platforms, featuring women protesting against electricity meters, stated that electricity is a commodity, similar to other goods available in the market.
The spokesperson said it is important to recognize that electricity isn't a free service; rather, it incurs costs at every stage of its journey, from generation at the source to transmission and ultimately distribution.
"Often, consumers are only aware of the distribution agency, remaining unaware of the intermediate stages and entities involved in supplying electricity to them. At each juncture of the supply chain, accurate measurement of electricity is paramount to maintain a supplydemand balance, ensuring the financial viability of the sector. Despite meticulous measurement throughout these stages, it's worth noting that accurate measurement and accounting of electricity consumption at the consumers’ end remains a challenge in J&K," he said.
“It is pertinent to mention that in J&K,