Srinagar, Apr 4: The power infrastructure of Jammu and Kashmir is bleeding millions, with J&K losing a staggering Rs 4.5 for every unit of electricity supplied by the J&K government.
Official documents reveal a stark economic challenge: the region loses Rs 4.5 on every unit of electricity supplied to consumers, with power generation costs reaching Rs 7 per unit.
At the same time, revenue recovery stands at a mere Rs 2.5 per unit.
“One of the key challenges we face is the gap between the cost of power supply and revenue collection. While the average cost per unit is Rs 7, the Power Development Department (PDD) recovers only Rs 2.5 due to systemic inefficiencies, high losses, and low tariffs. To bridge this gap, the government is implementing 100 percent smart metering, strengthening billing and collection mechanisms, and modernising the entire distribution network. These measures will enhance efficiency, reduce commercial losses, and improve revenue realisation,” the official document reveals.
A senior Kashmir Power Development Corporation Limited (KPDCL) official said, “Our goal is to bring down Aggregate Technical and Commercial (AT&C) losses from 41 percent to 25 percent by 2025-26, ensuring a financially sustainable power sector.”
The power infrastructure, long plagued by systemic inefficiencies, is now at a crucial turning point.
With only 3400 MW harnessed from a potential 20,000 MW of hydropower, the region stands on the brink of a potential energy transformation that could reshape its economic landscape.
Senior officials from the KPDCL are implementing an ambitious strategy to address these challenges.
The Revamped Distribution Sector Scheme, backed by a substantial investment of Rs 5620 crore from the Government of India, aims to overhaul the existing power distribution infrastructure.
The hydropower potential presents a beacon of hope.
Upcoming projects including Pakal Dul, Kiru, Kwar, and Ratle are expected to add over 3000 MW by 2027.
An additional slate of projects is projected to contribute 4500 MW within a decade, potentially transforming J&K from a power-deficit region to a potential power exporter.
Key infrastructure initiatives include the installation of 11,500 HVDS transformers, conversion of 23,000 km of low-tension bare conductors, replacement of 8000 transformers, and the deployment of 14 lakh smart meters.
The government has already achieved over 40 percent progress in loss reduction works, with more than 40,000 smart meters installed.
A proposed new Hydropower Policy is expected to accelerate development, attract private investment, and drive sustainable energy growth.
The policy aims to unlock the region’s full hydropower potential, marking a significant step towards energy self-sufficiency.
