J&K’s power tariff revenue increases by 11% since 2022

By: Riyaz Bhat

Srinagar: In Jammu and Kashmir, power tariff share in non-tax revenue has increased by 11 percent in four years.

Quoting the latest Economic Survey Report, an official informed the news agency—Kashmir News Observer (KNO), “Power tariff’s share in non-tax revenue grew from 56 percent to 67 percent since Financial Year-22.”

It further states that the power is a critical driver of economic development in Jammu and Kashmir, with the government focusing on optimizing power generation and enhancing infrastructure to ensure a reliable, 24 hours supply at affordable rates.

“Key initiatives include expanding hydel power plants, promoting rooftop solar panels for households, encouraging solar energy in agriculture, and upgrading transmission networks to support uninterrupted supply and export surplus power to other states for revenue generation,” the official said.

The official further said that the major contributors to own revenue resources are GST, power tariff, excise, sales tax, water user charges and taxes on vehicles.

“The proportion of these six revenue resources has increased from 86 percent in FY-22 to 93 percent in FY-25,” the official said.

It also said that the highest increase of 96 percent is witnessed in taxes on vehicles, followed by 67 percent increase in power tariff collections, 36 percent increase in GST collections, 33 percent increase in water user charges and 14% increase in excise collections.

“Sales tax has decreased by 8 percent, while the pool of all remaining own revenue resources has dropped by 30 percent,” the official said.

Pertinently, in the past nine years, Jammu and Kashmir has witnessed an average annual increase of 3.60 percent in electric power purchases while the growth stands at only 2.45 percent.

An official had said, “Over the past years from 2016-17 to 2024-25, Jammu and Kashmir has experienced an average annual increase of 3.60 percent in electric power purchases, as per extrapolated data.”

“When considered on a per capita basis, the growth rate stands at 2.45 percent per year, reflecting the region’s increasing energy demand. This growth is also in line with the region’s population increase, which has been growing at an annual rate of 2.14 percent during the same period,” the official said

Notably, Jammu and Kashmir till last week of February was relying on more than 85 percent of coal and solar power amid acute deficit of hydro power generation.

Officials of PDD department had claimed that local hydro power generation from the local power plants have reduced by nearly 90 percent.

An official had informed that “At present Jammu and Kashmir is 85-90 percent dependent on coal and solar energy that is being procured from the other states because as of now we don’t have a local power generation.”—(KNO)