JK looks to double its power purchase cost in 5 years to end crisis

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Srinagar: The state is projected to double its expenditure on power purchasing to meet the demand of its consumers in the next five years.
According to official documents accessed by The Kashmir Monitor, the power purchasing cost is expected to reach Rs 4,800 crore in the current fiscal.
While the Power Development Department (PDD) has projected that it would purchase power for Rs 5,058.42 in 2017-2018.
During 2018-2019, the power purchasing cost is expected to reach Rs 5,599.63 crore.
The department, according to these documents, has projected to purchase power for Rs 7,325.13 crore in 2020-2021.
For the last one decade, around Rs 30,000 crore has been spent a year on power purchase by the state.
The state government has spent Rs 1,355 crore on power purchase in 2006-07, Rs 1,750 crore in 2007-08, and Rs 2,034 in 2008-09.
In 2011-2012, the data reveals that Rs 3,000 crore was spent on power purchase. During 2015-16, around Rs 4,800 crore were spent on power purchase by the state, while there has been around 50 per cent revenue generation gap over the years.
The documents reveal that during 2014-2015 and 2015-2016, there was a revenue generation gap of Rs 3,913.19 and Rs 3,426.50 crore respectively.
The State Advisory Committee on power has said that widening gap in purchasing and revenue generation of power may lead to deterioration in the services of the department.
To reduce the revenue generation gap, the PDD has also decided to expedite the installation of metering process and has set up 2019 deadline for its completion.
Deputy Chief Minister, Nirmal Singh, who is also the Power Minister, said the state will purchase more power in the coming years to ensure round-the-clock electricity supply to the consumers.
“You will see a visible change in improvisation of power supply in the coming years. Various schemes are also being launched to increase power supply to the state,” he added.
The state is facing power crisis as the demand for electricity is far higher than the supply.
Presently, the PDD is able to provide only 1,130 MW of electricity to the consumers in Kashmir against the demand of above 1,700 MW, leading to power crisis.
The increase in amount of power purchase, according to officials, was for improvisation of power supply in the state.

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