Srinagar, Dec 02: Jammu and Kashmir’s power purchase liability has swelled to Rs 4751 crore as of September 30, 2025, with major dues pending towards central and private power suppliers. The figures were revealed in the Assembly, underscoring the financial stress faced by the Union Territory’s power sector.
According to official data, the highest outstanding amount of Rs 2675 crore is owed to the Power Development Corporation and Baglihar Hydroelectric Project (BHEP). Other liabilities include Rs 638 crore to NTPC, Rs 449 crore to NHPC, and Rs 172 crore to PGCIL. The dues highlight the widening gap between revenue generation and expenditure.
Officials said that despite the growing liabilities, no tariff hike has been implemented since November 2023. Together, the Kashmir Power Distribution Corporation Ltd (KPDCL) and Jammu Power Distribution Corporation Ltd (JPDCL) generated Rs 376 crore in revenue, far below the required levels to meet purchase costs.
The government acknowledged that the mounting dues pose a challenge to the financial health of the power sector. Authorities emphasized the need for reforms in billing, metering, and revenue collection to reduce dependence on external borrowings and ensure sustainable operations.
Legislators noted that the issue requires urgent attention, as the liability continues to rise, affecting both suppliers and consumers. The administration is expected to explore corrective measures to stabilize the sector and address the growing financial burden.
