by Masood Hussain
SRINAGAR: Jammu and Kashmir’s power sector has reported notable improvements in receipts, billing efficiency, and reduction in overall losses over the last three financial years, but the Union Territory continues to grapple with a mounting revenue deficit, high purchase costs, and rising subsidy dependence.
Official data for 2022-23 to 2024-25, along with projections for 2025-26, show that power receipts have grown steadily, while power purchase costs have slightly declined. Yet, the gap between expenditure and revenue remains vast, underlining structural weaknesses in billing and collection.
Power receipts increased from Rs 3,308 crore in 2022-23 to Rs 4,908 crore in 2024-25, marking a growth of 24 per cent over the three years. Power purchase costs, meanwhile, fell from Rs 9,860 crore in 2022-23 to Rs 9,050 crore in 2024-25, a decline of 4 per cent. As a result, the under-recovery of costs dropped from Rs 6,552 crore in 2022-23 to Rs 4,142 crore in 2024-25, indicating some improvement.
The trend is also visible in monthly data: in April–July 2025-26, purchase bills rose to Rs 2,894 crore, a 16 per cent jump over the corresponding Rs 2,496 crore in 2024-25. Receipts too increased, from Rs 1,582 crore in 2024-25 to Rs 1,668 crore in the same four months of 2025-26.
Category-wise energy consumption shows a sharp rise in domestic demand. Between 2022-23 and 2024-25, billed energy in the domestic category rose from 4,655 million units (MUs) to 7,582 MUs. Industrial consumption grew modestly from 1,391 MUs to 1,693 MUs, while commercial consumption rose from 1,204 MUs to 1,436 MUs. The “others” category moved from 2,257 MUs to 2,677 MUs.
Overall, total billed energy jumped from 9,507 MUs in 2022-23 to 13,388 MUs in 2024-25, a rise of over 40 per cent, while input energy at the distribution level grew only marginally. This reflects a significant improvement in billing efficiency, which rose from 51 per cent in 2022-23 to 70 per cent in 2024-25.
In financial terms, the billed amount rose from Rs 3,869 crore in 2022-23 to Rs 5,748 crore in 2024-25. Revenue realised also went up, from Rs 3,616 crore to Rs 4,890 crore over the same period. However, collection efficiency slipped from 93 per cent in 2022-23 to 85 per cent in 2024-25, weakening the gains made through better billing.
Domestic consumers account for the largest share of revenue, contributing Rs 1,912 crore in 2024-25, representing 39 per cent of the total. The “others” category contributed Rs 1,552 crore (32 per cent), while industrial and commercial consumers contributed Rs 852 crore (17 per cent) and Rs 575 crore (12 per cent), respectively.
Interestingly, despite consuming just 11 per cent of billed energy, the commercial category contributes 12 per cent of revenues, while domestic consumers, with 56 per cent of energy consumption, bring in 39 per cent of total revenue.
A comparison between Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL) reveals significant contrasts.
JPDCL, with 11.9 lakh consumers, realised Rs 2,587 crore revenue in 2024-25 against billed revenue of Rs 2,976 crore, posting a collection efficiency of 87 per cent and billing efficiency of 80 per cent. Its Aggregate Technical and Commercial (AT&C) losses stood at 32.5 per cent.
KPDCL, with 12.3 lakh consumers, realised Rs 2,309 crore revenue against billed revenue of Rs 2,784 crore, with a collection efficiency of 83 per cent and billing efficiency of 65 per cent. Its AT&C losses were higher at 31 per cent.
Within districts, Srinagar leads in smart metering, with 74 per cent of consumers covered, contributing Rs 909 crore in realised revenue. Samba, Kathua, and Jammu districts also show higher collection efficiencies in the Jammu division, while southern Kashmir districts such as Pulwama and Shopian report significant AT&C losses.
The total cost of power purchase, including surcharges, stood at Rs 9,434 crore in 2024-25, with staffing and O&M costs adding Rs 1,737 crore, taking overall expenses to Rs 10,738 crore. Against this, revenue realised was only Rs 4,890 crore.
This left a revenue deficit of Rs 4,470 crore in 2024-25, compared to Rs 6,530 crore in 2022-23. The average cost of supply (ACS) fell from Rs 5.66 per unit in 2022-23 to Rs 5.15 in 2024-25, while the average revenue realised (ARR) improved from Rs 1.79 per unit to Rs 2.35. Consequently, the ACS-ARR gap narrowed from Rs 3.87 per unit in 2022-23 to Rs 2.81 in 2024-25.
To cover the shortfall, subsidies worth Rs 5,843 crore were extended in 2024-25, slightly lower than Rs 7,817 crore in 2022-23.
The data points to a mixed picture. On the one hand, Jammu and Kashmir has improved billing efficiency and reduced AT&C losses from 53 per cent in 2022-23 to 41 per cent in 2024-25. On the other hand, collection efficiency has slipped, and deficits remain crippling.
With domestic consumption rising rapidly and smart metering showing encouraging results in districts like Srinagar and Samba, the government faces the dual challenge of expanding technology-driven reforms while rationalising subsidy dependence. Unless revenue realisation keeps pace with the cost of supply, the gap is likely to continue straining Jammu and Kashmir’s finances.
In the Jammu division, the power distribution picture presents a mix of strengths and weaknesses. Jammu district anchors the region’s revenues, with billed energy worth Rs 1,396 crore and realisation of Rs 1,212 crore, reflecting a collection efficiency of nearly 87 per cent. With 26 per cent smart meter penetration, the district’s billing efficiency is also high at 85 per cent, though AT&C losses remain above 26 per cent. Samba district stands out for its relatively better smart metering coverage at 40 per cent and billing efficiency of 70 per cent, though its overall collections are smaller, with Rs 330 crore billed and Rs 281 crore realised.
Kathua contributes Rs 430 crore in billed revenue, realising Rs 384 crore, and shows a strong billing efficiency of 75 per cent and collection efficiency close to 90 per cent, supported by one-third of consumers under smart meters. Udhampur reflects an unusual profile, with 100 per cent collection efficiency and billed revenue of Rs 174 crore, but weaker smart metering coverage at just 14 per cent.
By contrast, Rajouri, Poonch, Reasi, Ramban, Doda and Kishtwar are still marked by low smart meter coverage, ranging from 3 per cent in Poonch to about 44 per cent in Rajouri. Rajouri’s billing efficiency is moderate at 77 per cent, but collection efficiency dips to 72 per cent, pulling realised revenue down to Rs 137 crore against Rs 190 crore billed. Poonch, with just Rs 65 crore realised from Rs 86 crore billed, shows one of the weakest collection positions, while Doda, despite modest revenue levels, has one of the highest AT&C losses at 53 per cent.
Taken together, JPDCL recorded Rs 2,976 crore billed revenue and Rs 2,588 crore realised, translating into 87 per cent collection efficiency and 80 per cent billing efficiency across its districts.
In the Kashmir division, the pattern is sharper, with Srinagar district dwarfing others. It alone accounts for Rs 910 crore billed and Rs 813 crore realised, with 74 per cent of its consumers on smart meters. Billing efficiency here is 72 per cent, and collection efficiency touches 89 per cent, the best in the division, though AT&C losses remain at 36 per cent.
Other southern districts such as Pulwama and Shopian are important contributors, with Pulwama billing Rs 390 crore and realising Rs 330 crore at an efficiency of 85 per cent, while Shopian, though smaller at Rs 66 crore billed and Rs 55 crore realised, shows a similar efficiency profile. Baramulla follows with Rs 367 crore billed and Rs 303 crore realised, supported by nearly 30 per cent smart metering. Anantnag, with over two lakh consumers, billed Rs 323 crore and realised Rs 280 crore, recording 87 per cent collection efficiency but lower billing efficiency at 61 per cent.
On the other end, Budgam, Ganderbal, Bandipora, Kulgam and Kupwara show more stress. Budgam, with Rs 240 crore billed, could collect only Rs 158 crore, its billing efficiency a low 56 per cent and collection efficiency just 66 per cent. Ganderbal is even weaker, collecting Rs 91 crore against Rs 122 crore billed, with billing efficiency at 55 per cent. Bandipora, Kulgam and Kupwara show AT&C losses between 49 and 55 per cent, reflecting leakage points in the system despite smart metering progress ranging from 14 to 19 per cent.
Overall, KPDCL districts billed Rs 2,784 crore in 2024–25 but realised only Rs 2,310 crore, translating into a billing efficiency of 65 per cent and collection efficiency of 83 per cent. AT&C losses remain high at 31 per cent, slightly better than in some Jammu districts but still indicative of structural challenges.
The district-wise breakdown highlights how Srinagar and Jammu districts remain the financial pivots of the two corporations, while areas such as Budgam, Ganderbal, Poonch, and Doda continue to drag efficiency down. Smart metering emerges as a decisive factor, with higher coverage in Srinagar, Samba, and Rajouri translating into stronger revenues, whereas districts with single-digit coverage remain dependent on weak manual systems.
