JAMMU: The government has disclosed that Jammu and Kashmir’s power sector is grappling with significant financial and operational challenges, including mounting transmission and distribution losses and fluctuating revenue collection. Despite ongoing efforts to strengthen power infrastructure, losses remain high, straining government resources, the government disclosed in response to a question raised by Arjun Singh Raju.
The data, presented by the government in response to a question raised by legislator Arjun Singh Raju in the assembly, reveals that the Jammu Power Distribution Corporation Ltd (JPDCL) and Kashmir Power Distribution Corporation Ltd (KPDCL) have recorded high Aggregate Technical and Commercial (AT&C) losses over the past years. In 2022-23, JPDCL suffered a loss of 35.4 per cent, while KPDCL reported an even higher loss of 59.59 per cent. In the financial year 2023-24, JPDCL’s losses slightly improved to 31 per cent, while KPDCL still recorded a substantial 51.98 per cent loss.
The financial data also shows that power tariff collections have increased over the years, but not enough to offset the high losses. In 2022-23, JPDCL collected Rs 2,059 crore, while KPDCL realised Rs 1,967 crore in tariff revenues. In 2023-24, collections rose to Rs 2,347.61 crore for JPDCL and Rs 2,614 crore for KPDCL. However, the government has clarified that the financial unbundling of these power corporations is yet to be completed, and all power sale revenues are currently credited to the consolidated fund of Jammu and Kashmir. As a result, the net profit or loss of the corporations cannot be independently assessed
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The government has attributed these losses to infrastructure inefficiencies, power theft, and gaps in revenue collection. To address these challenges, initiatives such as smart metering, power grid modernisation, and stricter enforcement measures are being implemented. Meanwhile, ongoing hydropower projects, including the Pakal Dul, Kiru, Kwar, and Ratle hydroelectric plants, are expected to boost the region’s power generation capacity by 2027. Officials hope that these projects, alongside systemic reforms, will help bring down power sector losses in the coming years.
