The entire power generating and distributing system in the State has became overloaded and crowded that one is at a loss how the health of the chaotic department can be restored. We have three organizations for power generating and power distributing purposes and allied matters. They are Power Development Department (PDD), Jammu and Kashmir State Power Development Corporation (JKSPDC) and Jammu and Kashmir State Electricity Regulatory Commission (SERC). Contrary to expectations, the three organs lack coordination in some areas that cannot be called healthy by any stretch of imagination. Baglihar Hydroelectric Project’s Stage-II with an installed capacity of 450 Mega Watts was taken up for execution by the Jammu and Kashmir State Power Development Corporation as was approved by the State in March, 2012. All the three units having capacity to generate 150 Mega Watts of electricity each were commissioned between September 2015 and May 2016 and commercially the project was commissioned on May 4, 2016. However, during the past over one year the JKSPDC has failed to get appropriate buyers of the electricity. The reason is that power supplied from phase II is to be sold at Rs. 4.31 per unit which is the highest in the country. The rate constraint discourages buyers. As such the Corporation is obliged to sell power to PDD at a cost of Rs. 2.61 per unit which is a cheap rate. This messy affair has resulted in two problems. The first is the high cost of per unit by the Corporation has to pay to the J&K State for utilization of their water resources. Adding that cost to the general cost of construction, the Power Development Corporation finds that the revenues generated by the Baglihar Phase – II does not and cannot meet the expenditures incurred on the power project. PDD has been receiving the power but not paying the money it owes to the Corporation. This has led to a stalemate of sorts in which the PDD does not clear the bills of the arrears of payment and Corporation is not in a financial position to clear the arrears of payment.
J&K State Electricity Regulatory Commission stepped in and negotiated the price per unit that would be reasonable and acceptable to all stakeholders. But PDD is not clearing the outstanding bills. That the issue is between two entities makes little sense when the question is of clearing the liability so that Power Development Corporation can spend huge money for the completion of other projects presently at different stages of execution.
The JKSPDC requires money for regular maintenance of 23 hydroelectric power stations with a total installed capacity of 1220.96 Mega Watts. This is what the Government should keep in mind and see to it that the power generating units become self sufficient in regard to generating revenues. In the absence of appropriate buyers of the electricity the JKSPDC has been left with no other option but to sell the entire quantity of electricity being generated by Baglihar Stage-II to Power Development Department of J&K that too at a rate of Rs 2.61 per unit as was decided by the Jammu and Kashmir State Electricity Regulatory Commission (SERC) last year. Even power from Stage-I of the Baglihar Project is sold to J&K at this rate.
Though, the Baglihar Hydroelectric Project’s Stage-II has been commissioned and has been running for one full year, yet the question asked is how a project like this can survive when it is unable to generate funds to meet the construction cost. It is not a failed project, but of course, there is some deficit in planning and execution. The astonishing fact is that even after getting entire quantity of electricity generated by Stage-II of the project that too at the most economical rate of Rs 2.61 per unit, the Power Development Department has failed to clear the energy bills till date and the liabilities towards the Power Development Corporation are running into several hundred crore rupees. Obviously, there is lack of cooperation between two organizations. But how can a state claim to be a welfare state when it is not able to resolve a deadlock. It is the general public that has to bear the brunt. Power cuts, fluctuations, recurring faults in power supply and many villages and habitats without electric power is what the people are suffering. Add to this the woes of power for the industrialists of the State.
The Minister incharge of power must intervene and use his powers and discretion to find a solution to the growing differences between the two departments both working under his supervision.
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