Early Times Report
SRINAGAR, May 30:Asserting that the Power Sector of J&K can turn around the fortunes and put economy on the trajectory of high and sustainable growth, Minister of Finance, Dr Haseeb A Drabu, Monday tabled the Power Budget 2016-17 in the State Assembly.
With an eye on enhancing the State's hydro-power generation of the present 1,419.37 MWs, which contributes 45% of the total energy requirement, the Finance Minister said JKSDPC has drawn up a roadmap for systematic capacity addition in the 12th/13th Plan which is anticipated to make the State energy surplus.
"However timely DPR approvals/clearances, contracting, and works monitoring would be key to ensuring timely commissioning of the proposed projects," he said, adding that the State Government would remove the impediments to the investments by the Independent Power Producers in small hydel projects by bringing in a more investor-friendly policy soon.
The Finance Minister said the State Government faces a challenging task of providing each household round the clock access to electricity and improving the quality of life of its citizens through higher electricity consumption.
He said J&K has unfunded gap of Rs 2,988 crore in the power sector with deficit in financial terms touching Rs 3,927 crore. "Despite incurring such losses, we are not able to provide adequate quantity and appropriate quality of power to our people. If the power sector financials are taken care of, the state will not have a budgetary gap. Indeed, it will be a surplus," he said.
The Finance Minister said the J&K government has already announced debt restructuring by raising market borrowings for about Rs 7,000 crore in the form of power bonds to clear off accumulated power liabilities. During the course of last year, the Ministry of Power, GoI also announced 'UDAY (Ujjwal Discom Assurance Yojana) Scheme with a similar intent.
"As provided for under the Scheme, an MOU was signed by Power Development Department with Government of India for raising a loan of Rs. 3537.55 crore, out of which Rs. 2140.00 crore has been lifted and Rs. 1397.55 crore is to be lifted during the current financial year. The balance power purchase liability shall be restructured by the State Government by issuing Bonds. Once the entire liability is so restructured, there would be a net saving of about Rs 700 crore on account of reduced interest/surcharge burden," he said.
The Finance Minister said the State's peak demand for power has grown by over eight percent during the period from 2011 to 2015 while peak deficit has decreased from 28 per cent in FY12-13 to 23 per cent in FY15-16. "High share of hydropower in the generation mix combined with outages in transmission and generation sources has led to seasonal variations in power availability situation in the State," he said.
He said 107 villages and 3.56 lakh households are un-electrified which are planned to get electricity by the end of 2018-19. "Our Government has finalized the PFA Roadmap document in consultation with the Ministry of Power and its agencies like REC, CEA, PFC and BEE, highlighting all-encompassing power sector interventions including generation, transmission, distribution, renewable energy and energy efficiency/DSM measures proposed to be implemented during FY16 to FY19," he said.
Dr Drabu said the Government will continue to support the power sector through targeted capital subsidy schemes aimed at supporting the poor and marginal consumers, and elimination of regional disparities in the State. "Out of the 6,337 villages in the State, 98.3% i.e. 6,231 villages have been electrified while 1.7% i.e. 108 villages are still un-electrified which are covered and sanctioned under DDUGY and RGGVY," he said.
The Finance Minister said the JKPDD has planned 100 percent metering for reduction in commercial losses and investment plans, especially in the distribution and sub transmission sector, which are targeted towards bringing AT&C losses to 15% from 59% by FY19-20.
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