“History repeats itself, that’s one of the things that’s wrong with history.” -Clarence Darrow

Demanding Rights Without Accepting Responsibilities

by | Jun 29, 2009 | Blog

Kashmiris complain about lack of power, but are not willing to pay for it either

J&K govt fails to meet power tariff collection targets

Ishfaq Naseem (Indian Express)

A month before the Jammu and Kashmir government will present the annual budget at Srinagar, the State government review of the power collection targets has found that the there has been a shortfall in the collection of tariff by over Rs 200 crore by the close of last financial year.

According to sources, before finalizing the budget a Jammu and Kashmir Finance department review has revealed that the collection of power tariff targets have not been met. The assessment of the tariff collection targets in state was taken up late as after the Jammu and Kashmir government led by Omar Abdullah took over in the state it presented an interim budget in March this year to get the authorisation of the assembly to spend Rs 9,503 crores till the end of August this year.

According to Finance department officials from the target of Rs 850 crores kept for the last financial year, Jammu and Kashmir power development department has only collected the tariff of Rs 633 crore by 31 March 2009. According to officials the targets were kept in the last year’s budget with the government presenting a separate power project last year in which it gave a grim picture of power sector reforms and also the deficit in the collection of targets. “The collection of tariff in the power sector was a constant worry as the targets have not been met,” said, a top official of the state’s Finance department, adding that the government will further build a pressure on the Power Development department (PDD) so that the tariff collection picks up.

Officials however also add that while the targets have not bee met in the collection of tariff, Jammu and Kashmir government has asked the Centre to continue provide the annual power reform grant of Rs 1300 crore for the next six years to upgrade the power distribution system in the state. Centre had started providing the power sector reform grants to Jammu and Kashmir government from 2006 which was to last for only three years.

However last year nearly Rs 1000 crore were not released to the state as it showed also poor performance in checking the transmission and distribution losses. Commissioner Secretary, Power, Sundeep K Nayak, admitted that the targets were not met last year. He however said that in this financial year government was aiming to perk up the annual revenue collection. “We were aiming at increasing the revenue collection in the state. The shortfall in the revenue collection targets has been mostly due to the fact that people didn’t pay the revenue,” he added.

Officials in the PDD said that the government has recently issued a circular fixing the revenue collection targets and even asking the staff of the PDD to take measures to reduce the transmission and distribution losses.