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In 5 yrs, JK spends Rs 18,000 cr on power purchase
8/20/2015 12:28:23 AM

Peerzada Ummer
Early Times Report
SRINAGAR, Aug 19: The J&K Government has spent a whopping amount of Rs 18,000 crore over purchase of electricity from New Delhi in five years even as the State is facing severe power crisis.
Details available with Early Times reveal that in 2009-10, Rs 1977.694 crore was spent on electricity purchase. In 2010-11, the amount stood at Rs 2309.770 crore. More than Rs 3000 crore was spent in 2011-12 and Rs 3668.402 crore in the next financial year on power purchase. During the previous financial year, an amount of Rs 3336.473 crore was spent from the State exchequer. An amount of Rs 3667.500 crore has been kept for 2014-2015 to purchase power from outside the State, according to the details. It means that power-related expenses are on the rise.
Such a huge amount is being spend by the Government because successive regimes in the State have hardly taken any measures to rectify the wrongs and making J&K, which is bestowed with abundant water resources, self sufficient in power generation.
The Power Development Department had earlier maintained that total power requirement in the State was around 18000 MUs for year 2013, which is expected to reach 18500 MUs this year. The actual restricted supply for 2013-14 was 12663 MUs, and for the current year it is 13835. The actual deficit appears to be 4727 MUs.
The power generation capacity of the State is 2813.46 MWs. This comprises 761.96 in state sector. The Government also claims that Jammu and Kashmir is expected to become self-sufficient by the end of 13th Five Year Plan.
The shortage of power is also believed to be due to distribution of water resources that was agreed between India and Pakistan through the instrumentality of the Indus Water Treaty (1960). The argument made in the documents of the Government of J&K is that of the estimated potential of 20,000 MW (identified potential being 16480 MW) of the Indus river basin, a large percentage cannot be harnessed for the benefit of the State as the Treaty only allows for run-of-the-river projects that do not affect the riparian rights of Pakistan. Same is believed to reduce the power production to a third of the full potential.
During 2011, for the first time since 1960, the Government of J&K appointed a consultant to quantify the losses to the State occurring due to the Treaty. At the same time, the State Finance Commission is reported to have recommended that Pakistan must also be made to pay for the losses to J&K exchequer.
Another major issue is that J&K is receiving a mere 12 percent free power as royalty from the NHPC projects. This is particularly alarming as a huge amount is spent on power purchase. Much of this power is purchased from the Northern Grid to which J&K itself contributes.
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