J&K Govt to raise Rs 11,000 cr finance to liquidate power liabilities

ZT NEWS NETWORK

SRINAGAR: In a significant development, Jammu & Kashmir administration has decided to raise Rs 11,000 Crores for liquidating the power liabilities accrued till June 2020.

It is not immediately clear what the specific sources of financing the liabilities for the liquidation are.

This was decided today at the 4th Board of Directors meeting of Jammu and Kashmir Power Corporation Limited (JKPCL) chaired by Principal Secretary, Power Development and Information Departments, Rohit Kansal at Civil Secretariat here.

The BoDs held a detailed discussion on infusing the liquidity in Power Distribution Companies (DISCOMs) besides other impediments faced by the Corporation for effective service delivery to the public, an official statement said today.

The Board also discussed in detail the plan for utilizing the component of funds received under Atmanirbhar Bharat Abhiyan besides roadmap for implementing various features enumerated for power sector in this Self Reliant India Campaign.

The Board decided to raise more than Rs 11,000 Crores for liquidating the power liabilities accrued till June 2020 under Atmanirbhar Bharat Abhiyan. This measure is going to relieve the department of the liabilities and interest accruing from it and infuse new lease of life into its subsidiary companies constituted after disbundling of the Power department.

The BODs also approved for engagement of a Company Secretary for managing activities and other financial affairs of Corporation for a period of six months initially for managing the affairs of the Corporation professionally. The Board besides approved appointment of new members into the Board as directors to bring multiple opinions and professionalism into the working of the company.
In another move the department also requested the GOI for enhancing the allocation of power supply for winter months as the region faces a deficit of 1200-1400 MWs during that period. The department asked for an additional 1500 MWs for meeting the demand of extra power supply from thermal and gas power plants.

The department has enhanced its handling capacity to a greater extent as a network of grid stations has been inaugurated during current year. It was given that the measure is going to address the power woes of this region during peak winter months.

The meeting was attended by Directors of Board including DG Audit and Inspections, Fayaz Ahmad Lone; Chief Engineer (Trading) JKPCL, Mohammad Yousuf Baba while as Joint Secretary, Ministry of Power, GOI, Mritunjay Kumar Narayan and Additional Secretary, Science and Technology Department, Shafiq Ahmad, participated in the meeting through video conferencing.

Later the meeting also took review for winter preparedness of the department here in Valley. It was given in the meeting that sufficient number of transformers have been stored besides the network of LT/HT has also been strengthened to withstand the weather vagaries of this harsh season.