The demand for electricity is constantly increasing and there is no doubt that the generation capacity is chasing it or, as to date, the generation and therefore the distribution or supply does not match the demand for it. in Jammu and Kashmir. UT as such has to purchase power and it is also not just any proverbial cake as funds have to be managed or power purchased on a deferred payment basis. This unfortunate scenario is there for a host of reasons, even listing a few would need time and space, but touching on a glitch or two would prove the point. Jammu and Kashmir is blessed with great potential for hydropower generation and only a part of it is being tapped as the region needs huge investment in case other power plants over time. water would be installed. On the other hand, whatever capacity is generated, whether that totality reaches the final destination of supply and use, say a household, commercial establishment, etc., all is important to know. The wastage is there in the transmission system, but in the case of Jammu and Kashmir, it is much higher than the national average of around more than 22%. It is precisely because of the poor infrastructure and if we manage to reduce transmission waste, it means so much energy supply. Therefore, in addition to generating more energy, it is necessary to have better infrastructure to some extent to refurbish and overhaul it.
Perhaps this factor should always be considered at the planning level on a priority basis with regard to Jammu and Kashmir for which an amount of Rs 12,000 crore or Rs 6,000 crore each for the division of Jammu and the Kashmir valley was sanctioned. by the central government under the Revamped Distribution Sector Scheme (RDSS). The funds can thus be used to increase electricity distribution infrastructure in urban and rural areas, with the broader objective of ensuring a “regular” supply of electricity to consumers. The scheme under which the Rs.12000 crore package is approved is primarily aimed at reducing AT&C losses by improving operational efficiency and financial viability of food departments. In fact, AT&C losses are largely responsible for the imbalance in the power equations in that they are a combination of power losses that includes electricity theft and billing procedure inefficiency while the Commercial loss includes failure to pay electricity bills and inefficiency of the service concerned in the process of collecting the amount owed. Needless to add that in all these areas, the energy distribution and management system, especially the PDD, has many possibilities to bring more elasticity and zeal in its operation. The growing cumulative income gap in realizing electricity costs and regional disparities need to be addressed in a purely commercial and professional manner.
While we continue to criticize, short of castigate the DP for not adopting strict means to realize the electricity revenues due to it especially from the “bigwigs” who otherwise owe thousands and a few of them even hundreds of thousands of rupees, the pressure exerted on the other hand by “influencer” people coupled with increasing political interference like the proposal of a concessional framework, etc. upsets the basket of the roadmap towards the realization of the contributions. This translates into growing income gaps and therefore losses.
To be specific, unless we treat buying power (bringing one’s supply to the outlet) like buying any other product in the market (only for cash), any bundle of Overhauling or periodically bailing out the DDP by the central government is not a solution. Yes, for the construction of giant electricity generation projects, larger scale investments and joint ventures can be considered, but while the focus should be on generating more electricity and improving distribution, it It is essential that there have been one hundred percent recoveries so that the funds for the improvement of the electrical infrastructure can be managed from UT’s own resources. In fact, the UT government was reportedly officially requested by the central government to increase revenue generation despite the fact that a proposal had already been sent by and to assist the UT government under the RDSS. Needless to add, however, that private investment and the management of electricity distribution must be attempted to ensure the limitation of electricity cuts, reduce technical and commercial losses and guarantee the extension of coverage. The PPP model can do better. UT of Jammu and Kashmir is fortunately treated as one of those States and UTs categorized as “Special Category States” which should be treated as an opportunity to make the most of the aid received from the Central Government as under the scheme under reference. In no case, however, should it be understood as indulging in protectionism in the strict sense of the economy, which very often results from complacency or even from a certain recklessness.