PDD not unbundled

Power crisis has been dogging our State for so many decades. So many ills connected with power from generation stage to distribution and revenue realization stage, have been the bane of this vital service. The story of PDD is virtually the story of seek and hide. On the one hand, we have seen electric power reaching ÿÿmany far off places in the State from Nubra in Ladakh to the remotest village in Poonch district. But at the same time, season in and season out, we witness public protest rallies brought out against lack of power or very frequent power cuts and other related problems. This is a bizarre situation of contradiction. While the PDD is providing power to more and more villages and habitats, there are more and more complaints against its inefficient service.
PDD often complains of pilferage and loss in distribution system. A number of measures have been suggested from time to time to overcome these obstacles. Many suggestions have been implemented and many of them are still pending for implementation. The point is that there is much pressure from the general public that PDD service needs drastic improvement in all areas. The entire system needs modernization from power generation process to end consumer and realization of revenue. We in these columns have been taking up the power issue very frequently because it is crucial to the economy and normal life of people in the State. The people wonder why despite having adequate power resources our State is dismally deficit of power. This is contradiction in terms. We often suggested that before overhauling the entire power distribution system which no doubt is primitive and prone to bring losses, the PDD structure should be overhauled. Later on the law makers and policy planners added their contribution and recommended that unbinding of the PDD was of primary importance if we want to improve power distribution system.
Four years ago, the State Government came to the conclusion that it needed to find ways of realizing three main purposes by reforming the PDD structure. It thought that it needed to increase efficiency, accountability and reduction of losses in power sector. Therefore unbundling of Power Development Department was considered a remedy to get rid of the  existing ills and achieving the tripartite objective. When the matter was broached with relevant agencies that have a say in the matter, it was endorsed and even encouraged by the Union Power Ministry as well as Jammu and Kashmir State Electricity Regulatory Commission (JKSERC). PDD engaged consultancy services of a firm with expertise and after obtaining opinion from it, submitted a report to the Government for unbundling of the PDD. In September 2012 the Government ordered for unbundling of Power Development Department and setting up of one Transmission Company, two Distribution Companies (one each for Jammu and Kashmir divisions) and one Power Trading Company. Thereafter in 2012 four companies with the title-J&K State Power Transmission Company Limited; J&K State Power Trading Company Limited; Jammu Power Distribution Company Limited and Kashmir Power Distribution Company Limited were incorporated in order to achieve the objective stated above.
As the case progressed and power companies were formed in accordance with the main recommendations in 2012, suddenly political interference and intervention became visible that put a break in the speed with which the task of unbundling would have been carried on. Vested interests appeared from nowhere who put in massive effort to stonewall the unbundling process that had been recommended. That happened during the previous regime. However, it was expected that the new Coalition Government would take extraordinary interest in the matter and expedite the unbundling of the PDD so that a big step could be taken towards streamlining the task of the department and alleviating the difficulties of the public. But it seems that the present Government is feeling as much handicapped as the previous Government was. The result is that unbundling of the department has become a casualty in the course of invisible rivalry between the PDD administration and the vested interests working without and outside the department.
Our State is among the very few States in the country which has not completed the unbundling exercise despite repeated directions from the Union Ministry of Power and Jammu and Kashmir State Electricity Regulatory Commission. Hence the people continue to suffer. The situation on the ground is that the gap between the income and expenditure is widening day after day. Revenue collection is faulty and primitive, causing great discomfort to the consumers. Revenue losses occur owing either to pilferage or obsolete transmission lines that cannot bear the heavy load. CAG’s report on the performance of PDD has incorporated a couple of paragraphs on this area and asked why the process of unbundling could not be undertaken. PDD has conveyed to the Power Commission that its blue print for unbundling is ready and in hand so as to implement it hurriedly. The only condition is that nod should come from the Government and the Government so far has shown no indication that it takes the issue of much importance.

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