Major Defaulters
*Irrigation & Flood Control owes Rs 580+ crore
*Security Forces: CRPF (Rs 296+ cr), Army (Rs 197+ cr), BSF (Rs 11+ cr)
*Municipal bodies account for Rs 241+ crore unpaid bills
*KPDCL dues: Rs 2,310+ cr | JPDCL dues: Rs 1,437+ crore
*Power Dev Dept itself owes Rs 100+ crore
Srinagar, Apr 02: Jammu and Kashmir’s power sector is under mounting financial stress, with outstanding electricity dues crossing Rs 3,747 crore, even as the government continues to shield consumers from tariff hikes. Surprisingly, the Power Development Department (PDD) itself is the one of the defaulters that owes Rs 100 plus crore to the government.
The disclosure was made by Chief Minister Omar Abdullah in the Legislature while replying to a query raised by PDP MLA Aga Syed Muntazir Mehdi, bringing into focus a stark contradiction—affordable electricity for the public, but massive unpaid bills within government departments and security establishments.
The Chief Minister informed the House that there has been no revision or increase in power tariffs since December 2023, except for a limited adjustment in the PIU category. The existing tariff structure for 2025–26 continues to remain heavily subsidized, with Below Poverty Line households receiving concessional electricity for up to 30 units per month, domestic consumers billed under slab-based rates, and the agriculture sector benefiting from highly subsidized tariffs starting as low as Rs 0.90 per unit. The policy underscores the government’s effort to maintain affordability in a region where electricity is a necessity, particularly during harsh winters.
However, the financial strain on the sector is evident from the scale of unpaid dues, largely owed by government-linked entities themselves. According to the data placed before the Legislature, the total outstanding amount stands at Rs 3,74,735.42 lakh, including Rs 2,31,022.41 lakh under Kashmir Power Distribution Corporation Limited (KPDCL) and Rs 1,43,713.01 lakh under Jammu Power Distribution Corporation Limited (JPDCL). The Public Health Engineering (PHE) department has emerged as the single largest defaulter, with dues exceeding Rs 1,300 crore, followed by the Irrigation and Flood Control department at over Rs 580 crore.
As per the reply tabled by the Chief Minister, among security agencies, the Central Reserve Police Force (CRPF) owes nearly Rs 296 crore, the Army has pending dues of around Rs 197 crore and the Border Security Force (BSF) over Rs 11 crore. The Home department has accumulated liabilities of more than Rs 223 crore, while municipal bodies together account for over Rs 241 crore in unpaid electricity bills. Other departments adding to the burden include Housing and Urban Development, Health and Medical Education, Tourism, Education, Public Works (R&B), and Rural Development.
The data also highlights dues from central public sector undertakings and agencies such as NHPC, NHAI, Railways, Power Grid Corporation of India, BSNL and Prasar Bharati, along with several development authorities and corporations including JDA, UDA, SIDCO and SRTC. Notably, even the Power Development Department itself has outstanding liabilities exceeding Rs 100 crore, further underlining systemic inefficiencies.
Power distribution companies are actively pursuing recovery of these dues, but officials admit that enforcing payments from government departments and security establishments remains a complex challenge. The Chief Minister also clarified in the Legislature that there is no proposal under consideration to extend the Power Amnesty Scheme beyond March 2026, indicating a shift towards stricter enforcement and financial discipline. With tariffs frozen to protect consumers and subsidies continuing to support affordability, the burden of sustaining the power sector is increasingly tied to the government’s ability to recover its own dues. The situation lays bare a critical governance challenge—ensuring accountability within the system even as it strives to maintain public trust and uninterrupted power supply.
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