J&K’s electricity conundrum

Jagmohan Sharma
J&K is unique in that the more you try to understand and find solutions to the electricity problems the more you get sucked in by them. The misplaced chest thumping and hype by the people in places of power about our hydro power generation potential and making power supply possible, 24×7 to the consumers raises the expectation of the consumers thus causing a sense of betrayal and injustice once these promises are not fulfilled. Added to this is a feeling that is sought to be generated in the minds of the people of J&K that the hydro power potential of J&K is such that it can feed power to the entire nation or the misplaced conception that since the electricity is generated from “our rivers and our waters” as such electricity should be free for the people of J&K.
Considering the above let’s have a look at the following few points:
Installed capacity and peak load:
The total installed power generating capacity in the country as of 31st January 2025 is 466, 250 MW.
The total installed capacity of the power houses in J&K is 3,263 MW. Out of this 1211 MW is with the J&K owned generating stations (JKPDC) and 2339 MW is with the central government projects. Approximately 57 MW is with the private owners.
Another 3,000 MW is expected to be added to this capacity in the next few years from the ongoing projects on the Chenab basin.
Power generation from these power houses (3,263 MW) drops down to less than 20% of the installed capacity during the winter months because of low water discharge in the rivers. Thus, during winter months the total generation from these power houses is less than 625 MW.
The peak load (curtailed) of J&K during the current winter months was around 3,200 MW. The actual load could be 10 to 15% higher. Thus, as against the requirement of 3,200 MW peak load we had availability of 625 MW from power houses in J&K (UT+ Central).This is a representative figure of a particular time duration as the electricity load is dynamic and increases and decreases based on several factors such as weather conditions and time of the day etc.However, during winters there is a shortfall.
The shortfall in load is fedby the National Grid. Obviously, it has a cost. In any case the power distribution utilities are also paying for power supplied by our own power houses like Baglihar and Lower Jhelum, too. After all that they too are commercial entities like any other generator in the country.
It is important to underline the above data. This is because in J&K we are led to believe that J&K has hydro power potential that can feed power to the entire country. At the cost of repetition, its once again to state that the installed capacity of power generation in the country as of now is 466,250 MW and the total installed capacity in J&K is only 3,263 MW.
This data must sink in as it tells us a lot about the hype of J&K’s power potential and generation capabilities. It may be noted that during the last summers the maximum load in the country was recorded at a whopping 250,000 MW. Even if our total potential of generating 20,000 MW had been exploited, we wouldn’t have fed the entire country as we are led to believe.
Energy scenario:
Having had some insight into the peak load requirements of J&K, let’s have a look at the energy scenario. It is basically the energy we consume as consumers (units)and the energy we pay for. The energy bills are paid to the generators by the power utilities and in turn we pay to the power utilities as consumers for the electricity consumed.
In the financial year 2023-24 consumers in J&K consumed (load shedding not withstanding) 20,644 MU (million units) of energy. Out of this only 3,773 MU came from the J&K owned power houses, which is only 18% of the total energy consumed. The balance was imported from power houses owned by NHPC, NTPC, Nuclear Power Corporation, Satluj Jal Vidyut Nigam, Tehri Hydro Development Corporation, Aravali Power Corporation (Jhajjar), Meja Urja Nigam etc. Electricity was also purchased through Power Trading Corporation and Indian Electricity Exchange.
To understand the impact of water flow in our rivers on energy production in J&K following may be considered.
During the month of July 2024 when water availability in the rivers of J&K is almost at the highest, J&K consumed 1662 MU of energy while we got 646 MU from the power houses owned by J&K which is 38% of the total energy consumed.
Similarly, during the month of December 2023 when water flow in J&K rivers is generally almost at the lowest the total energy consumed by J&K was 1931 MU while the power houses owned by J&K generated 110 MU, which is only 6% of the energy consumed.
Obviously, the shortfall in energy requirement is fed from the National Grid.
Free power:
Clamour for free power for consumers in J&K is another interesting area of regular discussions amongst variouspressure groups. Lets now have a look at the data of the FY 2023-24 to understand as to how much free power is being provided to consumers in J&K already.
J&K consumed 20,644 MU (JPDCL: 8808 MU; KPDCL:11836MU) of energy for the said FY. The revenue collected was Rs. 4214 crores (JPDCL: Rs.2347 cr.; KPDCL: Rs.1867 cr.).
The purchase cost of power from the generators etc. was around Rs. 9500 cr for the said FY. This is the raw cost and does not include O&M charges, salaries and other administrative charges. Thus, there was a deficit (unrecoverable) of around Rs.5286 cr.
Given the fact that there are around 20 lakh electricity consumers across J&K and considering the average cost of purchase of electricity by power utilities at Rs.4.5 per unit, a small calculation will reveal that the distribution utilities are providing 490 units of free electricity to each consumer per month. Add to this the fact that though we are regularly paying the generators and the transmission utility by taking loans from various lending agencies as we are unable to collect revenue from the consumers. Today this amount stands at Rs.31,889 cr. J&K is unable to pay the interest on the loan either.
Conclusion:
Given the facts mentioned above, J&K is bound to seek power from National Grid to feed power to the consumers in the foreseeable future. The electricity from the National Grid helps in meeting the peak demand as well as the corresponding energy requirement of the people of J&K.
There may not be a dearth of electricity from the national grid but it’s available at a cost. If the availability of quality power, 24×7, is the intent/requirement, it must be paid for. The power utilities have to pay to the generators for the electricity purchased from them and also the transmission utilities. Similarly, consumers have to pay to the power distribution utilities for the electricity consumed by them. It must also be mentioned that J&K has the lowest power tariff in the country.
(Of course, the governments have to take care of the social strata that is below poverty line.)
The way forward:
There are technical and other issues too involved in the power sector of J&K. However, I will restrict myself to the present discussion.There is an effort being made to take care of the demand side management by the power utilities by installing smart meters at the consumer’s end. SMs are also being installed on distribution transformers and also the 11 KV feeders. This will certainly help in bringing about transparency in the energy accounting in various electricity feeders and also keeping a tab on the AT & C losses. AB Cables are also being laid to prevent illegal tapping of power conductors.
Therefore, the two elements (smart meters and AB Cables) necessary for controlling AT&C losses are progressively being introduced in the system.
However, these two elements are not sufficient unless an enforcement establishment, the third element, is constituted to keep a check on theft of power. The enforcement wing is a statutory requirement as per the Indian Electricity Act 2003. The present system of enforcement in power utilities in J&K is just an eyewash and entails conflict of interest.
Enforcement is also a different skill set and the enforcement agency needs to have skilled/trained people. The agency should also have backing of the law as specified in the Electricity Act part XIV section 135, 136 and 137. The Act has provision for special courts as well as investigative powers including methodology for carrying out inspection and penalties thereof.
Here it must be mentioned that power thieves are inventing/discovering new methods of power theft. That is why the requirement of enforcement is all the more important.
A visit along any of the LT lines strung using AB Cables will reveal that at several places the junction boxes, where AB Cables are terminated, are open and compromised. A keener eye will also reveal that the smart meters are being tampered with. At many places the AB Cables are strung but the bare conductor has not been removed thus keeping a leeway for power theft.
There is also a requirement of “ringfencing”data centers through a suitable (written) protocol so that physical/network access to the data center, where all the smart meters are reporting, is restricted and regularized. This is the requirement as per the Information Technology Act of 2000 (modified substantially in 2008). It is heartening to note that the data center at Bemina, Srinagar has already got ISO 27001 certification.
Managing Data Center and associated activities are also a highly skilled job for which there is a dearth of engineers in the power utilities in J&K. These technologies require engineers and technicians with hands-on skills and who take responsibility. These skills are “hierarchy diluters” and therein lies the challenge as new administrative and management techniques are bound to be looked into.
And finally, the power utilities will have to keep in mind the fact that all the electronic equipment including hardware, software and the like have a definite life cycle. They are required to be upgraded and changed after a particular time as the manufacturers end their software updates/security patches, hardware support, repair services and customer support after that. Power utilities in J&K must keep this in mind while formulating their future plans and budgets. I am constrained to mention this as these areas are conveniently neglected.
Cyber security is another issue that needs to be addressed and manpower trained for it. The power utilities can also think of outsourcing some of the activities to reputed entities that can look after the areas where trained manpower is not available with them.
A promising ray of hope in indigenization of energy production in J&K is the PM’s Surya Ghar Muft Bijli Yojana. This “Yojana” will introduce a category of stake holders who will not only be electricity consumers, but also producers (prosumers) and therefore help themselves with free electricity of up to 300 units as well as J&K to overcome the power conundrum.