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| Defective mechanism leading to increase in power tariff arrears | | | Early Times Report
JAMMU, May 17: As a result of shortfall in the power tariff arrears the Jammu and Kashmir Government has no other alternative but to bank on central Government funds for executing mini and medium power projects in the state and for purchasing additional power from the northern grid to make up for the acute shortage of electricity.
Official sources said that despite government's strict instructions to the Power Development Department officials on recovering as much tariff arrears as was possible the arrears for the last financial year were to the tune of over R s.1200 crores.
The sources said that during the last two years the power tariff arrears had come down from R s.1800 crores to over Rs.1200 crores.
Leaders of trade, commerce and industries while commenting on this issue said that because of failure of the government in realizing power tariff arrears and due to continued heavy transmission and distribution losses the government simply has opted for hike in power tariff which affected the domestic budgets of a large number of families in the state.
They suggested to the state government to improve tariff collection mechanism and reduce transmission and distribution losses.
Meanwhile, experts have identified six factors that were responsible for poor power tariff arrears collection. They believe that shortage of tariff recovery officials was one factor. As per them poor recovery mechanism was another factor responsible for mounting power tariff arrears and that too when there was some nexus between tariff recovery officials and power consumers.
They even pointed lack of coordination between assessing officers and the tariff recovery official.
According to the experts, absence of any heavy penalty to the defaulters too had increased the tariff arrears.
As per them, the sixth factor is the delay of the PDD officials and engineers in redressing the grievances of power consumers.
These very six factors have resulted in mounting arrears in sales tax and income tax and excise.
Industrialists want the state Government to take some measures which would rectify the defective mechanism for tariff and tax collection.
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