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Shrinking Investment Takes Toll on Power Sector

  • Behind Jammu and Kashmir’s under-development in the power generation sector lie ever falling investments and neglect by the State Government, an official report has pointed out.For past 30 years the Government has not invested to generate on average even one percent of the required annual energy demand while the power imports during the period have grown by more than 100 percent.During the period the fund allocations for expansion of the sector have gone down to less than 14 percent of the annual plan size today. The allocations were more than 26 per cent during early 1960s and the development of the sector was a priority then, the report by State Finance Commission highlights. “Only in a few annual plans since 1955 the power sector got a quarter of the funds.”

  • These revelations come at a time when state government has generated less than 2 MW of the planned energy during past 10 years. Baghlihar hydro power project, supposed to be commissioned in 9th five-year plan, was actually started in 11th plan.State’s total generation from its 20 hydropower projects stands at 758 MW while the power demand has grown up to 2200 MW during peak hours. JK’s Power Purchase Bill for the past 12 years has been more than Rs 16,500 crores including almost Rs 3000 crore bill for this fiscal.Of around 16000 MW hydro power potential in JK, only 4.60 percent has been tapped in the state sector for past six decades while as almost 10 percent has been exploited by National Hydroelectric Power Corporation in the central sector.“The Government has no policy on investment for generation and meeting the power requirements. This is ultimately putting enormous pressure on state economy,” the report highlights.

  • None of the projects on which the work was started some three decades ago have been completed despite repeated assurances by the government, the report mentions.It emphasizes that the Government needs to put in serious efforts to complete execution of various projects in state sector including Sawlakote I&II, Baghliar-II, New Ganderbal, Kirthai-I, Pahalgam-III unit, Machil, Sanjak and Bhaderwah projects which were scheduled for completion by 2009-10.Most of these projects, having cumulated capacity of more than 2000 MW have been identified and declared viable during late 70s and early 80s.

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