SRINAGAR: Jammu and Kashmir’s hydro power generation declined from 4,974.66 million units (MU) in 2024-25 to 4,883.49 MU in 2025-26, while the Government’s scheme to provide 200 units of free electricity a month to eligible Antyodaya Anna Yojana (AAY) households is yet to be implemented, according to the Power Development Department.
The details were provided by the Jammu and Kashmir Government in response to Un-Starred Assembly Question No. 1/6/285 raised by Balwant Singh Mankotia.
The Government said the proposed 200-unit monthly free electricity scheme would be implemented through a Renewable Energy Service Company (RESCO) model, under which solar systems would be installed on the rooftops of eligible AAY consumers.
The process to select RESCO vendors through competitive bidding has reached the evaluation stage. The Jammu Power Distribution Corporation Limited (JPDCL) opened bids for Jammu Division on 29 August 2026, while the Kashmir Power Distribution Corporation Limited (KPDCL) opened bids for Kashmir Division on 3 September 2026. The bids are currently under evaluation.
The Government estimated the annual financial implication of providing up to 200 free units to AAY households at Rs 130.87 crore, assuming full consumption of the entitlement by all eligible consumers.
According to the figures provided, the calculation is based on 222,568 AAY consumers and a tariff of Rs 2.45 per unit for 200 units.
The Government also said the recent power tariff revision and the proposed free electricity scheme are separate matters. While the free-power provision is a Government initiative, tariff revision falls within the jurisdiction of the Joint Electricity Regulatory Commission (JERC), the statutory regulator.
It said the tariff revision had been necessitated by the gap between the average cost of supply and the average revenue realised per unit. The revision follows a tariff petition filed by the distribution companies before JERC, with the regulator considering the annual revenue requirement and other relevant factors before issuing its order.
The Government expects the tariff revision approved by JERC to generate an additional Rs 251 crore in revenue for the distribution companies during the financial year 2026-27.
Despite the additional revenue, the Government said it would continue to bear more than Rs 4,500 crore annually as power subsidy to bridge the revenue deficit of the distribution companies, excluding their revenue expenses and other costs.
On power generation, the Government reported that hydro projects generated 4,974.66 MU during 2024-25, compared with 4,883.49 MU in 2025-26, a decline of 91.17 MU.
