JAMMU: The Jammu and Kashmir government has announced a major initiative to provide 200 units of free electricity to all households under the Antyodaya Anna Yojana (AAY) category, integrating the scheme with the central government’s PM Surya Ghar Muft Bijlee Yojana (PMSGMBY). The move aims to alleviate the financial burden on economically weaker sections and improve their overall quality of life, the government said in response to a question raised by three lawmakers.
The scheme will be implemented through the Renewable Energy Service Company (RESCO)/Utility-Led Aggregation model or any other financially viable model. The government has stated that the proposal is structured to ensure sustainability while providing uninterrupted electricity to the targeted households.
Regarding electricity billing in Jammu and Kashmir, the government clarified that consumers are already charged some of the lowest tariffs in the country, especially in the domestic category. Domestic consumers pay a subsidised rate ranging from Rs 2.30 per unit for up to 200 units per month to Rs 4.35 per unit. The Below Poverty Line (BPL) category enjoys an even lower tariff of Rs 1.40 per unit for consumption up to 30 units per month. In contrast, the average cost of power supply is around Rs 7 per unit, which means consumers are already benefiting from heavy subsidies.
To address concerns regarding excessive electricity bills, the government has reiterated that metered consumers are billed strictly based on actual consumption, while unmetered consumers are charged a flat rate determined by their sanctioned load as per the applicable tariff slabs. Any billing-related complaints are promptly examined and resolved as per the Electricity Supply Code. The government has also ruled out any arbitrary waivers on outstanding bills but has provided a structured approach to managing arrears through an Amnesty Scheme. Under this scheme, consumers are given an opportunity to clear their dues with a waiver on the interest or surcharge component of their outstanding bills. The government has now decided to extend this Amnesty Scheme with modifications, as announced by the Minister in charge of Power during discussions on budgetary grants.
A significant number of consumers across districts have already benefited from the scheme, which aims to streamline billing and collection mechanisms while ensuring fairness in tariff policies. The government has also initiated an assessment of the financial implications of providing 200 units of free electricity to AAY households and has decided to adopt the RESCO model for its effective and sustainable implementation. Additionally, the PM Surya Ghar Muft Bijlee Yojana subsidy will be leveraged to further support the initiative.
The government is also considering the installation of Solar Rooftop Systems (SRTs) at the premises of AAY households, particularly in hilly areas, to enable local electricity generation. This approach will help in reducing transmission and distribution costs, ensuring energy security for remote households. A survey to identify the target beneficiaries is underway, and once completed, the implementation framework will be finalised to ensure smooth execution of the scheme.
With electricity tariffs in Jammu and Kashmir already among the lowest in the country, the government has maintained that any further reduction in tariffs would need careful evaluation due to the financial burden on the power distribution companies (DISCOMs). The tariff structure is regulated by the Jammu and Kashmir Electricity Regulatory Commission (JERC) and is designed to balance affordability for consumers with the financial sustainability of power supply in the region.
The initiative to provide free electricity to AAY households was part of the election manifesto of the ruling JKNC.
