The Jammu and Kashmir government appears to be moving forward with plans to privatize power distribution in the Union Territory, following the implementation of smart metering.
Chief Secretary Atal Duloo has scheduled a meeting on February 5, 2025, which will include the agenda item of “privatization of power distribution” among other power sector reforms.
This meeting is set to cover several critical aspects impacting the power sector, including the status of the Revamped Distribution Sector Scheme (RDSS), hydel projects, power tariff collections, and the implementation of a system for monitoring power availability. Invitations have been extended to various officials from the Power Department and associated organisations, highlighting the serious intent behind this agenda.
Representatives from the Jammu and Kashmir Electrical Engineer Graduates’ Union (JKEEGA), under the leadership of President Peerzada Hidyattulah, have voiced strong opposition to the proposed privatization.
Hidyattulah stated, “We are opposing the privatization of the power sector tooth and nail. In fact, we were the first to hold a convention of All-India engineers to oppose any privatization move. It will have a huge impact on the people; power tariffs will increase as private players won’t offer any subsidy.”
He elaborated that taxpayers money have invested vastly in the power sector, and it should not be handed over to private entities.
The prospect of privatization follows recent decisions by the government to privatize power distribution across Union Territories (UTs), as part of its broader strategy under the Aatma Nirbhar Bharat Abhiyaan. The central government believes that privatization will improve the operational and financial efficiencies of power distribution utilities, which have been performing sub-optimally.
In a written response to parliamentary inquiries, it was mentioned that the decision to privatize ultimately lies with individual state governments.
Additionally, findings from a report drafted by JKEEGA suggest that privatization could result in a staggering increase in electricity costs, raising tariffs by as much as 200%. The current electricity rates, which range from Rs 2 to Rs 3 per unit, could escalate to Rs 8 per unit .
The backdrop of this discussion is the widespread discontent regarding the government’s plan, especially from engineers who believe that the population of J&K, which is significantly larger than that of other UTs combined, presents unique challenges that privatization will not address effectively. According to Census 2011 data, J&K has a population of 12.2 million, while the total population of all UTs combined is only 3.6 million. GK
