J&K may get separate power budget

The Jammu & Kashmir government is contemplating bringing out a separate budget for the power sector on the lines of the separate railway budget, during the upcoming budget session.

The economic advisor to the J&K government, Haseeb Drabu, said such an exercise had become imperative as the power sector consumed a disproportionately huge part of the state's resources. "This not only leads to a phenomenal deficit every year, but also puts stress on other developmental sectors as well," he said.

The objective of having a separate budget for the power sector is to ensure a thorough debate in the legislature on the issue, which is emerging as a major concern for the government.

"This will also help the government to sensitise public opinion towards this crucial issue, which if not addressed at the earliest will bring about a fiscal disaster," Drabu observed.

The government has already initiated various measures to improve power-tariff recoveries on one hand, and supply position on the other. Drabu said while meters were being installed on a large scale to maximise recoveries and prevent power thefts, the government was at the same time taking measures for improving the supply position.

In the pre-budget consultations with Finance Minister Muzaffar Hussain Baig, traders and industrialists had stressed for improvements in the power sector.

They had also observed that erratic power supply was one of the major reasons for economic backwardness despite the state's tremendous hydel power potential.

Drabu said the state government was pushing hard for the transfer of the Salal and Uri hydro power projects to the state, to tide over power crisis, and that the issue had already been taken up at the highest levels with the government of India.

"The government is also pressing the Government of India for earmarking at least one thermal power project exclusively for Jammu & Kashmir to improve the power supply situation in the state," he said.

The special feature of the upcoming budget session will be the introduction of the Fiscal Responsibility and Budgetary Management (FRBM) Bill.