December 2019 News

PDD Spares Big Defaulters, Suffers 50% Revenue Loss

18 December 2019
Brighter Kashmir


Srinagar: Jammu and Kashmir is facing around 50 percent revenue generation gap of electricity as Power Development Department is failing to recover power tariff from big defaulters. For the last 10 years, Jammu and Kashmir government has purchased power Rs 40,000 crore from various power generation corporations. As per official figures, during 2011-12, Rs 3761.52 crore was spent on power purchases. During 2017-18, 2018-19, each year over Rs 6000 crore was spent on power purchase. However, PDD has recovered only 50 percent electricity tariff from consumers over the years. The government had set target Rs 3700 crore as power tariff during 2015-2016 but recovered only Rs 1900 crore from the consumers. The PDD as per the official documents has projected that it would be able to recover power tariff of Rs 3000 crore against the target of Rs 6000 crore in the current fiscal. An official of PDD said government was not able to recover tariff from big electricity defaulters. 'Government departments are biggest power defaulters in Jammu and Kashmir. We are not able to meet 100 % target recovery of power tariff,' the official said. The PDD has been issuing notices to domestic consumers whose pending dues are even less than Rs 5000. To the contrary, the PDD has failed to recover Rs 1000 crore electricity charges from government departments. 'Power pilferage is another reason for revenue realization gap. There are some consumers who have agreement of 1 kilowatt and pay around Rs 700 but use electricity for Rs 1500,' the official said. To reduce the revenue generation gap, the PDD has also decided to expedite the installation of metering process and has set up the 2021 deadline for its completion. A senior official said power pilferage is one of the main reasons for revenue generation gap. 'We are working to ensure consumers use electricity judiciously,' he added.

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