Power Budget 2015-16

KL Report


A separate power sector budget for the State from 2015-16 is a landmark initiative of the new government. The reasons are   mainly three fold.  First, sustainable development of energy resources coupled with reforms in the power sector in a definite time frame.  Second, supply of 24×7 quality, reliable and affordable power to all Domestic, Commercial and Industrial consumers. Third, which is structurally intertwined with the reforms, is containment of our fiscal deficit and unleashing of a new era of development.

Power sector development holds the key to fiscal autonomy of our state. Our Government accords   the   top most   priority to the Power Sector.  We want to address the issues of the sector in their full spectrum. It  may  sound  a bit  alarmist  but  the  precarious  state of affairs in  respect  of  gap   between  power   purchase and actual revenue realization cannot be allowed to continue. It is the duty of the Government to ensure supply of power, but it is also the obligation of the people to pay for power.   The Government proposes to tackle the formidable gap between power  purchase and revenue realization through different measures,    apart      from     provisioning     of resources for purchase of power.

State  of Jammu  and  Kashmir is bestowed with significant   hydro   electric   power    and   solar energy   potential. When  exploited fully, it will provide  a  strong   impetus  for  the   growth   of the economy  of J&K. Development of this potential  would  need   huge   resources, technical expertise, reforms, proper  regulation and  energy  management.


The   Government   would   address   the bottlenecks in  hydel  generation  projects of  different  capacities  for  which identified potential in the  State  is of the order  of 20000  MW. Water  as  an embedded value  for  the  hydel  projects can  vest  with  the  entities  of  the  State such   as   the   J&K   State   Power Development Corporation Ltd (JKSPDC). JKSPDC   can   make    bankable   projects based on  this  resource  and   by  going public.

Such  models  of  faster development where  people of the  State could hold direct stake  in the  corporate entities  through  market  mechanism would   be   explored   as   an   option  for faster  development of hydel power.  The Government  would   consider   offering some   percentage of  State   Government share in JKSPDC to stakeholders and  list JKSPDC   shares  in   the   stock   market. Option of setting up of a J&K Power Finance    Corporation    would    also    be explored.

Solar power   projects  in  Ladakh  within the   scope   of  7500   MW earmarked  by the Central Government would be developed by the Power Development Department within the framework articulated by the Central Government, while keeping in mind the interests of stake-holders. The Government would explore the  option of bundling of costlier solar power  with cheaper thermal power from   the   Central  Government  pool  to make solar power projects financially viable.

This budget provides for State share in Joint Venture power  generation projects of  different  types   namely,  hydel,  coal based thermal and solar. This budget provides for conduct  of preliminary work for  the  proposed coal  block  in  Madhya Pradesh  and   the   associated   pit-head thermal  power   plant.  Preliminary  work on  the  Ultra Mega  Power  Projects (UMPP)   to    be    negotiated   with   the Central  Government  would  be undertaken. The Government would actively pursue transfer of hydel power projects from  NHPC and  this budget provides     funds      for     meeting     the operation and  maintenance cost  of such power projects to be transferred from NHPC.

Present Position of Power Generation

State Sector Projects

During  past  five  decades  considerable work  has   been   done   in  Power   Sector within the limitations imposed by the resources and other  constraints. The installed  capacity  in  the   state, thermal as  well  as  Hydel,  is  969.96   MW (208 MW Thermal  + 761.96  MW Hydel).  The prestigious Baglihar Hydro     Electric Project,  with  a capacity  of 450  MW was commissioned   during   2008-09.  During 2008-09,  2009-10,  2010-11   2011-12   & 2012-13    &   2013-14    1630.115   MUs, 3379.489 MUs, 3647.41 MUs, 3786.434 MUs, 3864.434 MUs   of energy  was generated     respectively      from      the power  projects under  operation with JKSPDC. The energy  generation for the year     2014-15     is    estimated    to    be 3927.714 MUs.

During 10th   five year  plan, no  additions have   been   made   to  power   generation but  in  the  2nd  year  of  11th  Five  year plan  Baglihar-  I with  capacity  of 450.00

MW was added to the State  Power Generation. During 11th   Plan 1.26 MW of Sanjak   MHP has   been   added besides augmentation of Bhaderwah MHP by 0.5 MW. During 12th FY 1.5 MW has been added by augmentation of Pahalgam MHP  in   2013. Thus the  aggregate capacity of  761.96   MW hydel power  in the    state  sector    is   available   to   the state, which is helping the state to overcome the power scarcity to some extent.

The machines of the old power houses have  outlived their lives in most  of the stations and require renovation and modernization. The upper Sindh Hydel Project-II with  an  installed  capacity  of 105MW (35×3  MW) was  being operated for  a  capacity  of  70  MW only  due   to reduced availability of water  as  result of damages to Wangath Link Canal. The construction   of    an    alternate    tunnel water   conductor has  been   taken   up  as per  the   advice  of  CWC for  restoration of  the  project   to  its  design  capacity  of 105 MW. Work   is    expected   to    be completed by August 2015.

The net hydropower generated by different Power Houses in   the State Sector adds  upto   approx.  3928  million units.

Roadmap drawn by JKSPDC

As per  the  load projection/forecast 18th Electric Power Survey of India report published by the  Ministry of Power,  GoI, J&K shall  have  a peak  load of 4217  MW in  2021-22   with  an  energy  requirement of 21884  MUs. In this backdrop, JKSPDC has  drawn  up a roadmap for systematic capacity  addition  in  the   12th/13th   plan which will not only bridge the supply demand gap  but  turn  the  state into  an energy   surplus  state  thus   reaping  the dividends   of  its   large   hydel   potential. The   summary of  the road   map   is   as under :

No. of Projects Capacity (MW)

State  sector     15     6263   (includes  3  projects of   Joint Venture Company of 2220   MW)

Central   sector 5       1859

IPP   (Big) Ratle          1       850

IPP  (Small)        36     372.50

Total:         57     9344.50W

The  execution  of the  projects proposed in the  roadmap entails an  investment of more  than  Rupees  one  lakh crore  in all sectors, namely State, Central, Joint Venture and  Private. The projects in the State Sector including JV projects would need an  investment  of  about  F  60,000 crore.  Based on an equity : debt  ratio of 30:70  there   would   an   equity requirement  of  F  18000   crore   and   a debt  of F 42000  crore  during the  coming decade.

Central Sector Projects

In  the   Central  sector,  during  the   first year  of 11th  Five Year Plan i.e. 2007-08, Dulhasti  Power   Project,   Kishtwar  with the   capacity  of  390  MW and  120  MW Sewa II were commissioned which increased    the     power     generation    in central  sector   from  1170  MW to  1680 MW.  Further during  2013-14,  45   MW Nimo Bazgo, 44 MW Chutak  & 2 units of 240  MW Uri II were  commissioned increasing  the  installed  capacity  of Central  Sector   Projects   to   2009   MW. This capacity stabilizes the  State  Power situation as  State  has  entitlement of 12 percent free  power  from  these projects. The  Government would  actively pursue enhancement    of     the      free      power entitlement.

It may  be  mentioned that  the  installed capacity of Power  Houses  under  Central sector  as of now is 2009 MWs.

Allocation of Coal Block for Setting up of 660 MW Thermal Project

JKSPDC has been allocated coal block (Kudnali Laburi in Odisha )  jointly with NTPC. It has an allocated   geological reserve of 130 and 266 Million Metric Tonnes  between JKSPDC and NTPC respectively. Pursuant to  the  decision of its Board  of Directors, JKSPDC engaged M/s SBICAPS as  consultant to  carry  out viability  and  sensitivity  analysis  of various options and  advise  on  the  way forward   essentially  with  regard to location  of the  end  use  plant.  SBICAPS has furnished a report which states that with a  coal  availability  of  3.40   million tonnes   per    annum   (assuming    that 11 extractable    coal    reserves   would    be 60-70    %    of    geological    reserve   of 130   MT  for   25   years),  the   installed capacity  works  out  to  660  MW (supercritical unit). Net  financial impact by locating the  project  in J&K vis-a-vis in Odisha  is  estimated  to  be  ` 700  crore per   annum  which   translates   to   over 18000   crore  over  the  lifetime  of  the project. JKSPDCL is  going  to  enter into JV arrangement with NTPC for both  coal mining and power  generation.


Transmission and Distribution  of  power is  looked  after   by  the   Power Development Department. Effective and efficient Transmission and Distribution is as vital as  the  generation of power.  The need  of power  in  the  State  is  growing, so   does   the   generation.   In   order   to transfer power  from  point  of generation to    point   of   consumption   effectively, the Transmission and Distribution infrastructure needs development. The infrastructure of Transmission and Distribution serving the  State  consists of four   transformation   capacities   of different voltage levels i.e. 220/132 KV level, 132/66-33 KV  level, 66-33/11 KV level and 11/0.04 KV level.

Transformation   capacity   of 3730   MVA was    available    at    220kV    level    and 4163MVA   at   132kV   level   by  the   end of year 2013-14. The infrastructure available to meet  the transmission of estimated  demand  at   the   end   of  12th plan  is  not   adequate  enough  in  the State.    There     is     an     urgent    need to upgrade the Transmission     and Distribution infrastructure  so  that  future needs of T&D can be fulfilled effectively. In  the  wake  of thrust on  generation of more and more power in the State  by undertaking the  fresh  projects, the  need for such  T&D network  needs immediate attention. The infrastructure capacity required at  220/132kV level to meet  the anticipated  peak  demand is  5160  MVA ending    2016-17, there will be a gap  of 1430  MVA  at  the  end  of  12th    five  year plan which is to  be  met  out  in phased manner. Likewise, the estimated requirement of transformation  capacity at   132/66-33kV   level   at   the   end   of 12th   plan  will be  6192.00 MVA  leaving  a gap   of   2029MVA   and   at   66-33/11kV level  will be  7431  MVA  leaving  a gap  of 2539.70MVA and  at 11-6.6/0.4kV will be 8917   MVA   leaving   a   gap   of  3094.36 MVA  which is to  be  provided in phased manner during the  12th  plan.

Around 9000  MW capacity generation is under    execution   under    state   sector, central   sector,   IPP   mode    and    Joint Venture  out  of which  around 2100  MW is  scheduled  to  come  up  by the  end  of 12th    five   year    plan.   The   state  has to     prepare    evacuation    system    for this generation capacity addition. Considering   the    roadmap  of   JKSPDC for state, IPP and JV projects, approximately  ` 2500   crore   would  be required  for  evacuation  of  power.   It  is also   required   that    for   evacuation   of Ladakh based solar and hydel power, additional transmission lines would be required. The  ongoing 220KV  Srinagar- Leh Transmission line would be highly inadequate. For  the  7500MW Solar projects,  approximately  ` 10000   crore may be involved, considering the  fact no feasibility  study  has  been  taken  up  yet.

Further, the requirement of the transmission  sector   for  the  entire  state from the  24×7 Power  For All perspective works   out   to   approximately   `   4054 crore.  The total perspective plan for Transmission   sector,   thus    would   be of   the   order    of 16554 (2500+10000 + 4054) crore.

Transmission Capacity available

Capacity at 400/220 KV Level (MVA): Owned & operated by PGCIL

At  400kV  level,  availability  at  present is 3465  MVA.  The  transmission  at  400kV level is looked after by Power Grid Corporation of India Ltd. (PGCIL). Power Grid     has     commissioned     two     new 400/220kV Sub Stations at New Wanpoh and    Samba.   However    outgoing   lines which will  interconnect  these  sub stations   with   the    state   transmission system   are    not    constructed   as   yet.

Powergrid has  been  approached through various fora  at  national level to  take  up the  construction  work  so  as  to  ensure that  benefits of these sub  stations reach the  people. After Commissioning of New Wanpoh and   Samba   Grid  Substations the  available capacity at 400kV level has increased to 3465 MVA while as the available    transformation    capacity    at 220/132kV  level  and  132/33kV  level  is 3730 MVA and 4163 MVA respectively. Besides,  the  reliability  of  power  supply to    Kashmir   valley   is   also   a    major concern    since   the    power    supply   is through  220kV  &  400kV  transmission lines which are passing through same corridor  which  is  highly  prone   to  snow and  wind storms.

Prime Minister’s Re-construction Plan (PMRP)

73 projects under T&D (PMRP) were taken up during financial year 2004-05.  52   projects have been completed, 7 projects are likely to be completed during 2014-15  (3 Transmission lines   and   4   optic   fibre   projects  executed through    PGCIL     on     turnkey     basis)     and 4  projects are  likely  to  be  completed  during F.Y. 2015-16. The aim of the scheme is to strengthen T&D System  under  PMRP, to  add and   augment  transmission  capacity  in  the T&D network   of  J&K  State   at   220  KV   and 132   KV    level.   Project    cost    in   2008    was 1351.00 crore    and    the    cumulative expenditure ending March 2014  is 1134.05 crore.  For completion of these projects an additional  amount  of 172   crore   is  to  be provided  by  Ministry  of Finance, Government of  India  based  on   the   recommendation  of Central Electricity Authority, Ministry of Power, Govt of India.

Other reforms initiated in power sector:

The  Department  is  endeavouring  to  improve its performance level in the  direction of power reforms  and has already initiated in the infrastructure  building  by  enacting  J&K  new Electricity  Act  2010.  Un-bundling of  the  T&D functions  of  the   PDD as  approved  by  State Cabinet earlier is under  progress. A consultant for the purpose has been engaged. A Transco, a Tradeco and  2 Distribution companies stand incorporated with the  Registrar of Companies under  the  Companies Act 1956.  While 3%  p.a. of  T&D losses  reduction  are  currently underway  under    R-APDRP   in  approved  30 towns   with  population  10,000   and  above   as per  Census  2001,  the  T&D losses  reduction in other  areas is proposed to be  taken  up under National Electricity Fund Scheme. The new Integrated  Power  Development  Scheme (IPDS) is under  formulation at cost of approximately ` 1000cr  for the  State. 10%  of this amount is to  be  provisioned by the  State under  Plan in coming three years.

Improvement and Strengthening of existing HT/LT System:

The Department has introduced HT/LT improvement scheme during   financial   year 2013-14, 2014-15   and   proposed  for continuation in 2015-16. The objective of the scheme is to  replace  the   rotten  poles  and un-serviceable/unauthorized     conductors at 11  KV  and  below. The most vulnerable lines which pose risk to  life  and  property shall be taken  on  priority.  The  scheme shall  cover  all the  areas not  covered  under  R-APDRP or any other  scheme.

Re-structured Accelerated Power Development & Reforms      Programme (R-APDRP)

Government of India launched R-APDRP in the year 2009 on 90:10 funding basis. The programme has two components; PART-A and PART-B.   The   estimated   cost   of   Part-A   is 91.25   crore   and   the   estimated cost   of PART-B is 1665.27 crore.  It covers 30 towns in Jammu and Kashmir including twin cities of Jammu and  Srinagar. Overall objective of the programme  is  to   reduce  the   AT&C   losses in  the   towns   covered   in  the   programme  to 15%.    The   10%   State   share  needs  to   be provided.

Rajiv  Gandhi  Grameen Vidutikaran  Yojana (RGGVY)

RGGVY  has  been completed in erstwhile 12 districts of the State  and is likely to be completed/closed  in  district  Jammu   and  Leh by March  2015.  5674  hamlets, 2896  partially electrified villages have  been  electrified apart from  223  Un-electrified/De-electrified villages. The Phase-II of RGGVY  have  been  approved for three districts, namely Doda,  Kishtwar and Ramban.  For   rest    of   the    State    the    new scheme called Deen  Dayal Upadhyay  Gramin Jyoti Yojana (DDUGJY) will cover.  For DDUGJY also State share of 10% is to be contributed.

Transformer Bank Funds would be provided for strengthening of Transformer Banks   in   Jammu   and   Kashmir Wings of E&MRE.  Further, modern workshops would also be set up.

Meter Testing Facility

NABL accredited meter testing facilities  would be   set    up   across    the    State.   This   would increase reliability of the  energy  audit system and   consumer  satisfaction.  State   of  the   Art mobile testing laboratories would be  set  up in Jammu   and   Srinagar  for  periodic  testing  of high end  consumers and  PDD grid stations.

Power Deficit:

J&K suffers from deficit of various kinds which include energy  deficit, financial deficit etc.

Demand  and Availability of Energy

Year 2012-13   2013-14   2014-15

Energy Requirement 17669.40 18022.38 18562.00

Restricted Energy

Availability         12054.59 12666.00 13459.00

Energy Deficit   5611.90    5356.38    5103.00

Energy Deficit (%)      31.22%     29.72%     27.49%

Demand  and Availability of Peak Power

Year 2012-13   2013-14   2014-15

Peak demand    2550          2600          2657

Peak Met  1817          1991          2050

Peak Deficit       733.00      609.00      607

Peak deficit %   28.75        23.42        22.84

It can  be  seen   that   both  energy   deficit  and peak  deficit  have  been   reduced considerably in recent years.  Despite improvement, the energy  deficit is of the  order  of 27%  and  peak deficit  is  of  the  order  of  23%  which  implies that  there is  energy   curtailment  of the  order of  8  hours   in  the   state, which  is  source   of concern  given the  harsh  climatic conditions in the  state.

Application of Information Technology

To improve the power supply various initiatives are being initiated which includes:

  1. Optic Fibre   Connectivity   between  grid stations and generating stations.
  2. Computerization of    the     billing    and revenue collection.
  3. Implementation of SCADA in Jammu and Srinagar cities.
  4. Implementation of  ULDC  in  respect  of town of Jammu  and  Srinagar.
  5. Real time  collection  of  all  the   energy data  and  revenue data  through the Common  server  and  inspections.
  6. Compliant metering process. The process of metering has suffered due to non- compliant environment which  has hampered the metering and other initiatives.
  7. Personnel management     information system.

Operation & Maintenance

Power Development Department has maintainable assets     valued at about 7000.00 crore including  about  48000  no.  of transformers across   the  State. The  damaged transformers are  generally  repaired  from  the Departmental Workshops  but during the  harsh weather seasons,  these  are   also  outsourced and  repaired  through registered  SSI  units  in the   J&K,  in  order   to   maintain  the   smooth supply of power  and  to  reduce the  period of replacement of damaged transformers. The main reason for damage of transformers is overloading.  Against  registered  load  of  2500 MU in  the   state,  the   demand  at   0.5   load demand factor  should not  exceed 1250  MW. But the consumers use  unauthorized load due to  which  unrestricted  demand is  as  high  as 2600  MW which indicate that  actual registered load  should  be   5200   MW.  The   department fully provides for authorized load. However, it also meets unauthorized demand which is not sustainable in long run.  The maintenance cost of  these assets of  the  PDD requires  at  least 3%  cost  of  assets, which  is  about 210.00 crore  per  annum, whereas actual  availability under   non  plan  as  of  now  is 41.00   crore annually.

Human Resources Management in Power Sector

Human resources management in the power sector    is   a   formidable   bottleneck. Power sector utilities and the Department face skill scarcity at different levels. For undertaking a focused    skill   development   programmes for youth    to    contribute    in    the    development of   power  sector    and    also    for   retraining the departmental personnel of different categories, the  Government proposes  setting up  of a dedicated institution under  the  name, Chenab  Power Management and Training Institute.  Start-up funds  for  the  same   would be provided. The Government would aim at streamlining  management of  various  cadres. Creation of posts  of personnel of different categories   based   on    standard   norms    for assets under  management would be done.

Metered / Registered Connections

As per Census  2010-11, the  number of households  in  the  State   were  20,15,088 and 17,53,201     households      avail      electricity. However,  15,72,815 consumers are  registered with the  PDD ending 2013-14.

Status of yearwise consumers registered with the Department

  1. No.


Cumulative Households connected

Cumulative Number  of connections


































2014-15 (E)



To increase  the   revenue  and   meet   out  the deficit, all the illegal households consuming power without department’s knowledge are being  identified,  booked   and   brought  under the  department’s registration network.

Details of Electronic Meters installed in the State * Including Ladakh.

Funds    will   be   provided   for   achieving   full coverage of consumers under  meters.

Per Capita consumption of power

Per   capita   consumption   in   J&K   State    has shown  steady growth  and  is  presently  around 950  units  which  is  nearly  at  par  with  national average. Due to extreme climatic conditions in most  parts  of the  state the  per  capita consumption is low. The issue needs to be addressed by  increased generation for  which the  state has  framed   ambitious  plans  to  add 9000MW during 12th& 13 Plan period.

S.No Year Per Capita Consumption (kWHr)

1       2001-02   552.66

2       2002-03   603.22

3       2003-04   669.37

4       2004-05   667.44

5       2005-06   703.80

6       2006-07   715.24

7       2007-08   742.80

8       2008-09   759.03

9       2009-10   841.85

10     2010-11   849.98

11     2011-12   868.39

12     2012-13   927.86

13     2013-14   952.34

14     2014-15 (E) 993.04

J&K State Electricity Regulatory Commission Funds would be provided for J&K SERC for its various activities.

Energy Efficiency

Focus on improving energy  efficiency and demand side management is of prime importance. Apart from concentrating upon timely energy  audit with accountability of personnel and  substantial reduction of  AT&C losses, the government would also focus on promotion of sustainable lighting devices. Launching of LED based lighting devices promotion scheme on  pilot basis in the  three regions of the  State  would be taken  up.


Revenue realization from the consumers on account of tariff has always been a matter of concern. Even though   there    has     been a   gradual   increase   in   the    recovery    since 1996-97  as is evident from the information tabulated  below,  yet  the  same   has  not  been able  to  cope  up  with the gap, between  cost of supply/purchase   of   power   and   the   revenue realized. (in crore)

S.No Year Targets     Achievements

  1. 1996-1997 95.95        54.33

2       1997-1998        120.00      94.76

3       1998-1999        184.00      112.64

4       1999-2000        250.00      230.00

5       2000-2001        306.00      277.00

6       2001-2001        445.70      268.34

7       2002-2003        485.70      323.20

8       2003-2004        506.36      342.63

9       2004-2005        588.12      398.77

10     2005-2006        735.95      437.21

11     2006-2007        711.64      455.48

12     2007-2008        792.64      693.24

13     2008-2009        1105.00    737.51

14     2009-2010        1197.91    823.96

15     2010-2011        1259.61    950.40

16     2011-2012        1549.82    1200.16

17     2012-2013        2011.47    1693.51

18     2013-2014        3344.60    1714.25

19     2014-2015        3508.62    1527.67  up to Feb 2015

The issue of revenue realization  is  to be  seen in the  context of  tariff orders   passed by  the J&KSERC,    T&D  losses,    subsidies    (gap    in revenue  realization)   allowed   by  J&K   SERC, billing efficiency and  collection efficiency. The Finance   Department   has    kept    a   revenue target of ` 3508.62 crore  for current financial year  2014-15, but  actual  recovery  on account of electricity tariff (including ED) ending February,   2015    is    only   1527.67 crore (tentative).

The following  table  represents the   subsidies allowed by JKSERC based on the  tariff petition filed by the Department with approval of competent authority in the  Government. The implication of inbuilt gap (subsidy) is linked to the policy directions of Government to the Department. On a rough calculation basis, the 4782.36 cr worth  of power  purchased by the Department  this  year   up   to   January,  2015 would  have   an   inbuilt  non-realization component  linked  to  this  gap.   The average cost   of   power    purchase  this   year   up   to January, 2015  is 3.78  per  kWh (unit). The Department   has    purchased   energy    up   to January 2015,    worth 466.83    crore   and 4315.53 crore    from   JKSPDC   and    from non-J&K State  Generating Companies.

Consumer   Categories     

Approved Average   CoS  at approved      loss level `/kWh

Approved Average Tariff











Non-Domestic/ Commercial




47 %

State/Central  Govt. Dept.




14 %






Public Street  Lighting




30 %

LT Public Water  Works




45 %

HT Public Water  Works




29 %

LT Industrial Supply




54 %

HT Industrial Supply




45 %

HT-PIU           Industrial





36 %

General  Purpose/ Bulk





27 %





51 %

Year  wise  expenditure  on  power  purchase is given below.

Table.  Year-wise  Expenditure  on  purchase of Power and other  expenses

Year Expdt. on purchase of






Total Expdt. on purchase of power (3+4)  Other Expdt (Est., O&M, Dep., Int.)



1       2       3       4       5       6       7

1       2003-04   1343.15    107.72      1450.87    212.44      1663.31

2       2004-05   1339.62    103.88      1443.50    276.01      1719.51

3       2005-06   1671.51    124.76      1796.27    232.03      2028.83

4       2006-07   1415.45    129.86      1545.309 320.28      1865.59

5       2007-08   1744.33    82.251      1826.581 409.77      2236.35

6       2008-09   1459.496 339.307    1783.696 409.44      2193.13

7       2009-10   1996.712 546.697    2543.409 492.09      3035.499

8       2010-11   2157.63    654.79      2812.42    536.87      3349.29

9       2011-12   3051.022 710.33      3761.52    690.49      4452.01

10     2012-13   3510.851 592.233    4103.084 687.42      4790.504

11     2013-14   3989.207 482.457    4471.964 665.57      5137.53


2014-15 (up to Jan



466.83      4782.36 (` 4163 crore yet to be paid)

Water Usage Charge

The   Water   usage  charges  are   Government levy  under   Order   No.  WRRA/01/2011  dated 1st  February  2011  passed by the  State  Water Resource  Regulatory  Authority,  Government of Jammu  & Kashmir and  has  to be paid for all hydro stations.

The  situation  gets   further   complicated  when the    basis   of   tariff   order    of   JKSERC    is considered. The tariff order  takes  into account T&D    losses     and      energy      requirements year-wise   as    mentioned   below.   However, the   actual  figures  are   much   higher,  leading to   further    erosion   in   revenue   realization. For streamlining the  power  purchase and  the load  dispatch  mechanisms  in  our  State through separation of these activities and maintenance     of     arm’s     length     distance between the  buyer  and  the  consumer.

Table   :  Approved   Loss   Trajectory  (in   %)   by


Description        2012-13   2013-14   2014-15   2015-16


Losses       4.05%        4.00%        4.00%        4.00%


Losses       44.5 %       43.0%        41.4 %       40.0%

Aggregate   T&D Losses     46.76%


T&D     loss was  57.37

%)     45.26% (actual T&D  loss was

54.57 %)   43.76% (actual T&D  loss in  1st   Qtr was

47.26  %. Post- floods    it has  gone up        in next

Qtrs)          42.26%

Table:  Energy  Requirement  (in  MU) for the  Multi

Year Tariff Period approved by JKSERC

Particular 2013-14   2014-15   2015-16

Energy    Reqd.

@             State

Periphery 10,254 (actual

purchase by

PDD: 12769)     11,580 (actual

purchase by

PDD upto  Jan

2015 12668, expected to be 13900  for the  year)     11,303

Current     Situation    of    Power     Purchase Financing

Positionofunpaidcheques/bills: The following cheques/claims of PDD are  pending at treasuries:-

  1. Power Purchase cheques of CPSUs/JKSPDC.

For 2013-14                                       =  100.085 crore. For 2014-15                                       =  693.472 crore.

  1. Other claims pertaining to JKSPDC

(Hundies)                                          = ` 151.67  crore

Total                                               = ` 945.227 crore

Amount   pending   on   account  of   power purchase: The position of funds  authorized by the    Finance    Department   and    the    funds released    by   Administrative    Department   isgiven below:- (` in crore)

Detailed head   Detailed  head description         BE 2014-15       Amount authorized  by FD      Amount released       by Adm. Deptt.

216  Purchase    of power

(CPSU)      3117.50    2117.75    2117.75

219  Purchase of power from PDC    550.00      275.00      200.00

224  Fuel   for   Gas

Turbine     0.50 0.25 0.00

          Total          3668.00    2393.00    2317.75

The   balance   of 1275.75 crore    out    of sanctioned  provision  of power  purchase is  yet to be released during current Financial Year.

Liabilities of power  purchase:

The   actual power    purchase  liability   of   department   is 6266.13 crore. However,     if    proposed adjustment of 2102.23 crore   against plan grants to JKSPDC   is   reduced,  then     power purchase   liability    of    the     department   is  4163.90 crore  as per break  up given below:-

  1. CPSUs = ` 3001.61 crore ii.     JKSPDC                                      = ` 649.83  crore iii.    UI/deviation charges         = ` 512.45  crore

Revenue:-    Against     targeted    revenue    of

`  2390.00 crore   (including   ED)  ` 1527.67 crore  has  only  been  realized  ending  February

  1. The revenue  recovery   has   been   hit

badly by rains/flood during September, 2014.

Reasons  for   widening   gap   between  power purchase bill  and  the  revenue realization  are

briefly as under:-

  1. Low tariff for sale of power.
  2. High T&D losses assessed.
  • Un-controlled and un-accounted consumption of power beyond  the agreemented load by the  consumers, as most  of the  installations, post-floods are un-metered.  Even  the   metered connections do  not  indicate the  correct position of the consumption of power, because the  meters are either non- functional or sluggish. Although the process of metering of consumer installation by  installations of Electronic Meters  was  introduced, yet  metering of all the  consumer installations is likely to take  some
  1. The non camp temporary installations of Security Forces have been consuming electricity            without            registered connections.        The        energy         thus consumed by  the  Security  Forces  goes un-accounted and un-paid.
  2. No realization    is    made     on    energy consumed by the  Migrant Camps.
  3. Power consumption on account of public lighting is a legitimate charge on the Municipal Corporations, Municipal Committees and other  Local Bodies in whose   jurisdiction  the   power   is consumed.  But,  unfortunately,  there is no realization on this account. The Department, in addition to this is also bearing  the   maintenance  cost   of  the street light.

vii.  Electricity tariff due from the State Departments  also   does   not   get   fully paid.

Taking    above     factors     into    account,   the revenue realizable  for  FY  2014-15   would  be 1800  crore  approx.   For  the  year  2015-16, the   budget  provides  for  meeting  the   power purchase bills and  liabilities.


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