L-G Sinha okays procurement of 2,400 MW to tide over power crisis

Srinagar, November 25

In response to the ongoing power crisis in the Valley, the J&K administration said that it had secured approval from the Lieutenant Governor to procure 2,400 megawatts (MW) of electricity from the NTPC and the Solar Energy Corporation of India.

H Rajesh Prasad, Principal Secretary, Power Development Department (PDD), revealed that the current power demand in the UT had reached 3,200 MW while in-house generation was only 1,350 MW. The shortfall is a recurring issue during winters when demand typically spikes. Prasad explained that the decrease in power generation during winters is due to reduced water levels in rivers and other bodies of water. The current power generation is 85% lower than during the summer season, dropping from 1050 MW in June-July to 150 MW.

To address the power deficit, the government has procured 2,400 MW of electricity with agreements for more, depending on power generation. A long-term decision has been taken to meet winter power demand, including the purchase of 950 MW through a power purchase agreement (PPA) with the NTPC, 1,650 MW from Solar Energy Corporation of India (SPCI) and 500 MW under the Union Government’s Shakti Policy.

Prasad highlighted that a comprehensive infrastructure upgrade, utilising a financial package of Rs 5,000 crore, had been undertaken to enhance power supply across districts. Outstanding dues on power purchases, amounting to Rs 30,700 crore, have been cleared to provide a clean balance sheet to newly formed corporations.

Addressing concerns about high losses attributed to power theft, poor metering and low tariff rates, Prasad emphasised that the government was working to optimise services and enhance overall consumer satisfaction. The Joint Electricity Regulatory Commission (JERC) has issued a new tariff order, effective from December 1, 2023, reflecting a 15% increase in existing tariffs. To mitigate the impact on consumers, the government will withdraw the electricity duty, previously levied at 15% on energy charges, ensuring no overall increase in electricity bills.