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| In 5-yrs, PDD loses Rs 1800 cr revenue | | | Peerzada Ummer
Early Times Report
Jammu, May 23: The public exchequer in Jammu and Kashmir has lost a whopping Rs 1800 crore during the past five years due to the alleged failure of the Power Department to realize the targeted revenue from the consumers across the erstwhile state.
Official documents in possession of the Early Times reveal that the targets for the collection of tariff were not achieved during 2014-15 to 2018-19 and that during 2018-19, receipt on account of sale of power was Rs 3,246 crore against the target of Rs 5,042 crore. The revenue realized from the sale of power was less than the cost of purchase in all the years.
The State had set its revenue collection targets lower than the cost of purchase. This less realization of revenue against cost of power purchase during respective years was a burden on the State. Difference between cost of purchase of power and actual revenue realized from sale of power is on account of operational inefficiencies and slow implementation of power reforms. The State has very high AT&C losses (50 per cent). During 2018-19, the department purchased power worth Rs 7,167 crore and against which it paid only Rs 5,265 crore. As of March 2019, the department had a cumulative liability of Rs 8,970 crore on account of unpaid power purchase bills. During 2018-19, the State Government is shown to be in Revenue Deficit by Rs 4,859 crore and Fiscal Deficit by Rs 13,337 crore. After taking into account the deferred liability on account of outstanding power bills amounting to Rs 8,970 crore, the Revenue Deficit and Fiscal Deficit is understated to that extent.
Furthermore, the function of electricity supply to consumers is handled departmentally in the State, as de-bundling and power reforms have not yet been achieved (March 2019). Hence, the receipts and expenditure on procurement and supply of electricity forms part of the State Government accounts. Steadily rising gap between the Revenue Expenditure of the Power Development Department and Revenue Receipts is the most significant structural imbalance in the Budget of the Government and a drain on the resources, which could otherwise be deployed for developmental outlays.
Pertinent to mention here that during 2017-18, the Department purchased power worth Rs 5,709 crore against which it paid only Rs 3,036 crore to the power producers, thus creating liability on account of power purchase. The department had liability of Rs 7,018 crore on account of unpaid power purchase bills.
The State Government was in the year 2018 showing revenue surplus of Rs 7,595 crore but after taking into account the deferred liability on account of outstanding power bills amounting to Rs 7,018 crore, the revenue surplus will be reduced to that extent. |
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