Power Privatisation Plan Sparks Fears In Jammu Kashmir, Govt Denies Move Amid Resentment

This follows an order that cancelled a high-level meeting to discuss power reforms, including the privatisation of the power utility.

Srinagar:The Jammu and Kashmir government’s proposal to privatise the power utility of the region has triggered a controversy, with employees fearing for their jobs and apprehending the steep hike in the electricity tariff.

This follows an order that cancelled a high-level meeting to discuss power reforms, including the privatisation of the power utility. The meeting was to be held at the civil secretariat Jammu at 4 pm on February 5 led by Chief Secretary Atal Duloo.

It also came days after Chandigarh officially handed over the Electricity Department to Eminent Electricity Distribution Limited (EEDL), a subsidiary of the Kolkata-based RP-Sanjiv Goenka (RPSG) Group, on February 1.

The central government announced the privatisation of the power departments and utilities in Union Territories across the country under Aatma Nirbhar Bharat Abhiyaan in 2020. It cited better services to consumers with improvement in operational and financial efficiencies for the move.

The Jammu and Kashmir Electrical Engineer Graduates’ Union (JKEEGA), a body of engineers working in the union territory’s power utility, says the government should put to rest the proposal once and for all.

President JKEEGA Engineer Pirzada Hidayatullah believes the move will jeopardise the ongoing reforms, which have shown positive results, including boosting revenue in the power sector. He cited that billing efficiency has increased from 30 per cent to 80 per cent in the last five years. Besides, the overall losses have decreased, which is significant given the previous highest transmission and dismission losses across the country.

“But we can’t be compared with Mumbai or Delhi,” he said. “We have brought down losses with the reforms like installations of smart meters, electric poles, and transformers. Now with all the infrastructure in place, we won’t allow the utility to be handed over to a private player.”

Jammu and Kashmir had a metering percentage as low as 50 per cent in 2019, but it now ranks among the top seven states in the country for smart metering, with over six lakh meters installed last year. Besides, segregation of agricultural feeders, High Voltage Distribution Systems (HVDS), AB cables in congested areas, and state-of-the-art SCADA and RT-DAS systems will not only automate the system but will significantly bring down high AT&C losses and ensure round-the-clock power supply.

However, a spokesperson of the Power Development Department denied any proposal with the government for the privatisation of power distribution in J&K.

This has prompted the engineers to seek a meeting with Chief Minister Omar Abdullah to abandon the plan.

"We will explain to him the negatives, including the tariff hike, which is expected to be hiked by 200 per cent as the per-unit cost of electricity would go up to Rs 8," he added.

Read More