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In 6 years, J&K spent `28,306 cr on purchasing power

High T&D losses posing major challenge to fiscal health of state: Economic Survey
Srinagar | Posted : Jan 13 2018 1:29AM | Updated: Jan 13 2018 12:35AM
In 6 years, J&K spent `28,306 cr on purchasing power
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Jammu and Kashmir’s dependence on outside power supplies to meet electricity requirement is denting state’s economy badly with government spending whopping Rs 28,305 crore on power purchases from outside in last six years.

The figures presented by the government in economic survey report 2017 reveal that from fiscal 2011-12 to 2016-17, JK government has spent Rs 28,306 crore on power purchases.

As per official figures, during 2011-12, Rs 3761.52 crore were spent on power purchases from central power supplying utilities and Power Development Corporation.

In 2012-13 expenditure on power purchases was Rs 4103 crore, 2013-14 Rs 4471.96 crore, 2014-15 Rs 5153 crore, 2015-16 Rs 5293 and 2016-17 was Rs 5524 crore

The survey shows that the power purchases bills have been witnessing increase over the years while at the same time failure of authorities to bring down Transmission and distribution losses is denting state’s economy.

“While there is some progress but the power shortage continues to haunt the State and is a major constraint for the development of the industry. The biggest problem is on the distribution front as Aggregate Technical & Commercial (AT&C) losses of the state are on the higher side,” the report reads.

“The main reasons for such high losses are technical as well as commercial. To minimize losses, the system needs up-gradation and improvements especially in existing outdated distribution network. However with the efforts of the government the AT&C losses which were estimated at 61.30 percent in 2014-15 were reduced to 58.82 percent in 2015-16. This has been posing a major challenge to the fiscal health of the state,” the report adds.

The state government is spending huge amount of money on power purchases despite having estimated 20,000 megawatts hydro power potential.

“The estimated hydro power potential of the state is 20,000 megawatts (MW), of which about 16475 MW have been identified. This comprises 11283 MW in Chenab basin, 3084 MW in Jhelum basin 500 MW in Ravi basin & 1608 MW in Indus basin. Out of the identified potential, only 3263.46MW i.e. 20% (of identified potential) has been exploited until now which comprises 1211.96 MW in State sector, 2009 MW in central sector and 42.5 MW in private sector,” the economic survey adds.

“During past five decades considerable work has been done in power sector. The installed capacity in the State, thermal as well as Hydel is 1419.96 MW (208 MW Thermal + 1211.96 MW Hydel). The prestigious Baglihar Hydro electric project, stage I was commissioned during 2008 - 09 and Stage-II was commissioned in 2015-16.”

“Energy generation in 2014-15, 169 2015-16, and 2016-17 has been recorded as 39887.17 MU’s, 40302.88 MU’s and 48662.06 MU’s respectively, recording an increase by 21.99% from 2014-15 to 2016-17,’ it adds.

“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 report adds.