FOIJ Slams 100% Power Tariff Hike Proposal as Black Warrant to J&K’s Industrial Sector

Jammu, 24-04-2025: An Urgent Meeting of the Federation of Industries, Jammu was held under the Chairmanship of Sh. Lalit Mahajan, Chairman FOIJ, in the presence of Co-Chairmen, Sh. S.C. Dutta, Sh. Jatinder Aul, Sh. Ajit Bawa, Sh. Raman Jolly, Sh. Viraaj Malhotra, Convenor, with the participation of a large number of members of the Federation to discuss the issue regarding the Power Tariff  Proposal Petition for the FY 2025-26 submitted by Jammu Power Distribution Corporation to the Joint Electricity Regulatory Commission for UT with an unwarranted approx. 100% Power Tariff Hike proposal  for Industrial Sector

It is pertinent to mention here that the JPDCL targeted the working as well as new industrial units established in JKUT with the steep increase of power tariff in the range of approx. 100% increase in the Tariff in comparison to the existing Power Tariff which we term as a Black Warrant for Industrial Sector of J & K and we fear that the Working as well New Units may opt for the clouser of their Units in near future which will be resulting in to steep increase in the unemployment graph of J & K UT.

It is worthwhile to mention here that the JPDCL failed to reduce the Transmission Losses which is in the range of 45 to 50% since last so many years in spite of the facts that  the National Level Average Transmission  Losses is in the range of 16%   whereas the Power Development Department has failed to control the Transmission Losses resulting huge financial losses to the Government  and the JPDCL is in the process to  pass on the  burden to the Genuine Industrial Sector of J & K with the average transmission losses in the Industrial Areas between 6 to 8% and the Industrial Sector  is paying the amount of Power dues on regular basis.

While going through the petition, it has been observed that the gap in the projected purchase cost and the revenue generation is due to higher A&T losses in comparison to the national level, for which it is unjustified on the part of the JPDCL to hike the power tariff for the industrial sector, as it is the responsibility of the JPDCL to reduce the A&T losses rather than to increase the present power tariff.

It is worthwhile to mention here that on one side, the Industry and Commerce Department invited the Prospective Investors with the slogan of “SUBSIDIZED LOWER POWER TARIFF’ for the industrial sector of J&K, and on the other side, JPDCL in the process of many fold increase in the power tariff for the FY 2025-26, which we term as BETRAYAL of the industrial sector of J&K.

We wish to draw the kind attention of the Hon’ble Chief Minister, also holding the charge of Power Minister, towards the Industrial Sector which is also suffering due to unscheduled power cuts reported in the industrial areas of Digiana, Gangyal, Bari Brahmana, Samba, and Kathua District, resulting in huge production losses as well as losses to JPDCL, with a request to issue directions to concerned officials to look into the matter to ensure to Uninterrupted Power supply to the industrial sector working in the state in spite of all the odds and providing direct and indirect employment to local people.

We request Hon’ble Lt. Governor Sh. Manoj Sinha, Hon’ble Chief Minister, Jenab Omar Abdullah, Hon’ble Deputy Chief Minister Sh. Surinder Kumar Choudhary, Sh. Mohd Rafi Andrabi, Chairman JERC, for immediate rejection of the Power Tariff Proposal for the FY 2025-26, which will provide great relief to the existing as well as New Units being set up under the NCSS-2021 Industrial Development Scheme for J&K