Providing free power to people up to 500 units can cost UT exchequer Rs 1000 Cr, say experts
Srinagar, Aug 30: The huge promise made by the National Conference, Peoples Democratic Party (PDP) and the Apni Party in their manifestos about providing free electricity to people of J&K can cost UT exchequer a whopping Rs 1000 Cr.
These promises, have come at a time when J&K is already grappling with the power losses and inadequate local generation.
NC and PDP in their manifesto have promised 200 units of free electricity while the Apni Party has stated that it will give 300 units of free power in summers and 500 units in winters.
This approach is similar to the strategies used in states like Punjab and Delhi, where free electricity is a popular electoral promise.
However, economists and experts warn that such promises may not be practical in Jammu and Kashmir, where the financial and logistical challenges are significantly higher.
“Jammu and Kashmir currently purchases electricity worth Rs 5000 to Rs 6000 crore annually, a figure that surpasses the power liabilities of Punjab and Delhi. Punjab, which provides 300 units of free electricity per month, incurs a liability of around Rs 4000 crore, while Delhi, offering 200 units of free power, faces a burden of Rs 3535 crore,” said an expert.
He said that the situation in Jammu and Kashmir, with its higher liabilities and limited power generation resources, makes the prospect of fulfilling these promises even more daunting.
The issue of electricity has become a significant concern for the people here, especially after the installation of smart meters led to widespread protests.
With new industrial parks under construction in the region, the demand for electricity is expected to rise, further straining the UT’s resources.
The experience of Himachal Pradesh serves as a cautionary tale. There, the Congress party had promised 300 units of free electricity during the election campaign, a pledge that contributed to their electoral victory. However, the government was forced to roll back the scheme a month ago, citing the additional financial burden of Rs 1000 crore.
“Similarly, in Rajasthan, the Gehlot government has been providing 100 units of free electricity, resulting in power companies in the state accumulating losses of up to Rs 1 lakh crore. This has led to electricity rates above 300 units rising to Rs 7.65 per unit, making the scheme unsustainable. In Jammu and Kashmir, where there are already limited sources of power generation, the promise of free electricity appears increasingly untenable,” the expert said.
Another expert said that that offering cheap electricity, rather than free, may be a more viable option for the state, ensuring both economic stability and uninterrupted power supply to its residents.
Mir Yasir, a research scholar said?: “At present, Electricity rates in Jammu and Kashmir are structured as Rs 1.20 per unit for up to 99 units, Rs 1.90 per unit for 100 to 199 units, and Rs 4 per unit for usage above 200 units, resulting in a monthly financial burden of Rs 5,000 to 6,000 crore. Now when 200 to 500 units of free electricity will be provided, it will result into the additional burden of whooping Rs 1000 crores,” he said, adding that “this is economically not viable and appears a hollow promise which will be very difficult to fulfil.”(KNO)
