J&K faces Rs 95 lakh interest bill for delayed power payments

Srinagar, Jammu and Kashmir has been saddled with an interest liability of nearly Rs 95 lakh for delays in clearing electricity-related payments, an amount that has added to the financial burden of its power sector without bringing any additional electricity to consumers.

The liability, disclosed in a fresh statement issued by the Northern Regional Power Committee (NRPC), is the highest among 140 utilities and entities listed across northern India and accounts for nearly 45 per cent of the region’s total interest payable for the April-June quarter of 2026.

The figures come as Kashmir heads into winter, when electricity demand rises and the power department faces the annual challenge of maintaining supply to households and businesses.

According to a Document by NRPC, dated October 27, accessed by Rising Kashmir, Jammu and Kashmir has been assessed Rs 94,95,917.56 as interest on delayed payment of deviation settlement charges. The total interest payable by all listed utilities stands at Rs 2.12 crore.

Punjab has been assessed just Rs 26,021, while Delhi, Haryana, Himachal Pradesh, Rajasthan, Uttar Pradesh and Uttarakhand have no interest payable against their names.

Jammu and Kashmir’s interest liability is more than 365 times that of Punjab.

The charges arise from a mechanism through which power utilities settle differences between the electricity they were scheduled to draw from the grid and what they actually drew. Payments under this mechanism must be cleared within prescribed timelines, with delays attracting interest.

For Jammu and Kashmir, the Rs 95 lakh is therefore not a payment towards purchasing electricity. It is an additional financial obligation arising because payments were delayed.

While the interest liability cannot be directly linked to any particular power cut or increase in consumer tariffs, it represents an expense that could have been avoided through timely settlement of dues.

The NRPC statement does not explain why Jammu and Kashmir accumulated such a large interest amount or identify the individual payments responsible for it. It also does not disclose the principal amount involved or whether the interest has since been cleared.

The figures have emerged against the backdrop of continuing concerns over Jammu and Kashmir’s ability to meet electricity demand during the colder months, particularly in the Valley, where dependence on electricity for heating places additional pressure on the system.

The financial position of the power sector assumes added importance during this period, when arrangements for electricity procurement and grid management become crucial to maintaining supplies.

The NRPC has given utilities 15 days from October 27 to point out any discrepancies in the calculations. In the absence of objections, the amounts will be treated as final.

The committee has asked the concerned entities to deposit the interest into the Northern Region Deviation Pool Account maintained by the Northern Regional Load Despatch Centre.

The statement covers the first quarter of 2026-27 alone, leaving open the question of whether further interest liabilities have accumulated since June