Mohinder Verma
JAMMU, May 24: Power Development Department has disobeyed the explicit directive of the Jammu and Kashmir State Electricity Regulatory Commission (JKSERC) on the clearance of whopping Rs 2186 crore arrears on account of energy charges towards the State Power Development Corporation despite the fact that non-payment of such a huge amount has been adversely affecting the financial health of the Corporation.
Official sources told EXCELSIOR in its order on determination of annual fixed charges and tariff for the Financial Year 2014-15 of the Jammu and Kashmir State Power Development Corporation Limited dated February 21, 2014, the State Electricity Regulatory Commission had expressed serious concern over the abnormal delay on the part of Power Development Department in clearing the arrears on account of energy charges towards State Power Development Corporation.
The Commission had observed that Power Development Department was irregular in making payments, which had resulted into swelling of the arrears up to September 30, 2013 at Rs 2186 crore, sources said, adding the Commission had even observed that though the Board of Directors of SPDC and a Committee headed by Finance Secretary had strongly recommended for resolution of this grave issue but no substantial progress could be made.
As this issue has a strong bearing on the viability of the Corporation as a generating company, the Commission had directed the Principal Secretary PDD to resolve the issue at the earliest and file status report within three months from the date of issuance of order (February 21, 2014), sources informed. The Commission had also directed the SPDC to proactively pursue the case for recovery of the total arrears with the PDD while making it clear that this shall not debar the SPDC to seek recourse to other legal remedies in case utility fails to clear outstanding dues.
The directive of SERC was of immense importance in the light of the fact that non-recovery of dues from the PDD was leaving adverse impact on the financial position of the Corporation and creating hurdles in raising of capital for its new projects, sources said.
However, the PDD has disobeyed the directive of the SERC as even after the lapse of three months outstanding arrears have not been cleared thereby creating numerous difficulties for the generating company (SPDC). “Even the request of the SPDC regarding issuance of Letter of Credit to the tune of average monthly billing for energy charges has not been considered by the PDD till date”, sources added.
When contacted, Managing Director of State Power Development Corporation, Mehraj Ahmad Kakroo confirmed that PDD has not cleared even a single penny out of Rs 2186.54 crore arrears till date. “We have learnt that Power Development Department has decided to convene a meeting with the SPDC in this regard in near future and hopefully they will start clearing the arrears”, he added.
However, sources said that keeping in view the financial health of the State, there was no possibility of PDD clearing whopping arrears in one go. “In view of prevailing situation there are grim chances of PDD ensuring timely payment of future energy charges”, they added.
“Had those at the helm of affairs in the PDD been regularly clearing the arrears the figure would have not touched whopping Rs 2186.54 crore”, sources said, adding “the instant case clearly indicates that there is no proper planning in the Power Development Department, which has received strictures a number of times even from the Central Electricity Regulatory Commission (CERC) for inept handling of issues of immense importance”.
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