J&K collects Rs 3637 crore power revenue till December

Srinagar, Jan 28: Jammu and Kashmirís power sector has realised Rs 3637 crore in revenue during the ongoing financial year 2025-26 up to December 2025, official figures show.

Of this, around Rs 395 crore (tentative) was realised during the month of December alone.

Earlier, revenue realisation up to November 2025 stood at Rs 3208.71 crore, with approximately Rs 385.69 crore collected during November, indicating a marginal improvement in monthly collections.

Despite the steady revenue inflow, the power sector continues to grapple with a severe financial crisis, with a projected revenue gap exceeding Rs 4200 crore for FY 2025-26.

Officials attribute the widening deficit to a sharp rise in power purchase costs, heavy dependence on imported electricity, and persistently high distribution losses.

Power purchase cost, including transmission charges, has been projected at Rs 5924.15 crore for FY 2025-26, compared to Rs 5620.88 crore in the previous fiscal.

This component alone accounts for nearly 87 percent of the total revenue requirement of the sector, significantly straining finances.

According to official estimates, the total revenue requirement for FY 2025-26 has been assessed at Rs 6827.18 crore.

However, revenue realisable at existing tariffs, even with an assumed 93 percent collection efficiency, is estimated at only Rs 2688.99 crore, leaving a deficit of Rs 4136.03 crore.

The revenue gap remains a serious concern for the power sector in J&K, a senior official of Kashmir Power Distribution Corporation Limited (KPDCL) said.

He said that despite efforts to improve operational efficiency and reduce losses, the rising cost of power purchase and inadequate recovery through existing tariffs continue to exert tremendous pressure on the system.

One of the biggest structural challenges remains extremely high Aggregate Technical and Commercial (AT&C) losses, which are projected to decline only marginally from 47.79 percent to 46.41 percent in FY 2025-26, almost three times the national average of 15-20 percent.

This implies that of every 100 units of electricity purchased, fewer than 54 units are actually billed and realised.

The financial stress has also translated into power curtailments.

A senior KPDCL official said areas recording more than 40 percent AT&C losses are facing six-hour power cuts, while regions with losses between 15 and 40 percent are subjected to 4.5 hours of curtailment.

However, the official said that 83 feeders across Kashmir have been exempted from power cuts as they are fully metered and report AT&C losses in the range of zero to 15 percent.

These feeders are not facing any curtailment, and the revised curtailment schedule has been implemented after approval from the Power Development Department (PDD).

The situation has been further aggravated by a sharp rise in electricity demand amid harsh winter conditions.

Peak demand in Kashmir has crossed 2400 megawatts, while the existing transmission and distribution infrastructure can supply only 1800 to 1900 megawatts.

To bridge the demand-supply gap, the PDD is importing close to 3000 megawatts of electricity, further adding to the financial burden on the power sector in J&K.