SRINAGAR: In Jammu and Kashmir, the share of power tariff in non-tax revenue has increased by 11 percent over the past four years.
An official said that Power tariff’s share in non-tax revenue grew from 56 percent to 67 percent since the financial year 2022.
The official further said that power is a key driver of economic development in Jammu and Kashmir, with the government focusing on optimising power generation and improving infrastructure to ensure a reliable 24-hour supply at affordable rates.
“Key initiatives include expanding hydropower plants, promoting rooftop solar panels for households, encouraging solar energy in agriculture, and upgrading transmission networks to support uninterrupted supply and export surplus power to other states for revenue generation,” the official added.
The major contributors to JK’s own revenue resources include GST, power tariff, excise, sales tax, water user charges, and taxes on vehicles.
“The proportion of these six revenue sources has increased from 86 percent in FY-22 to 93 percent in FY-25,” the official noted.
The highest increase of 96 percent was recorded in taxes on vehicles, followed by a 67 percent rise in power tariff collections, a 36 percent increase in GST collections, a 33 percent rise in water user charges, and a 14 percent increase in excise collections.
“Sales tax has declined by 8 percent, while revenue from all remaining own resources has dropped by 30 percent,” the official said.
Notably, over the past nine years, Jammu and Kashmir has witnessed an average annual increase of 3.60 percent in electricity purchases, while the growth in power generation stands at only 2.45 percent.
An official explained, “From 2016-17 to 2024-25, Jammu and Kashmir has experienced an average annual increase of 3.60 percent in electric power purchases, according to extrapolated data.”
“When considered on a per capita basis, the growth rate stands at 2.45 percent per year, reflecting the region’s increasing energy demand. This trend aligns with the region’s population growth, which has been increasing at an annual rate of 2.14 percent during the same period,” the official said.
Until the last week of February, Jammu and Kashmir relied on over 85 percent coal and solar power due to an acute hydroelectric power deficit.
Officials from the Power Development Department (PDD) said that local hydropower generation had dropped by nearly 90 percent.
“At present, Jammu and Kashmir is 85-90 percent dependent on coal and solar energy procured from other states, as local power generation remains inadequate,” an official said.(KNO)
