J&K Government Grapples with Free Electricity Promise
The Jammu and Kashmir government confronts a significant challenge. It struggles to deliver on a key election promise of free electricity. Mounting pressure forces the administration to explore alternative solutions. The government now actively considers a solar rooftop plan for economically weaker households.
The Original Pledge and Its Complications
During the 2024 Assembly elections, the National Conference made a major commitment. Its manifesto promised 200 units of free electricity to residents. The party blamed the Indus Water Treaty for the region's persistent power woes. It argued that people suffered from supply crises in both winter and summer.
After forming the government, Chief Minister Omar Abdullah's administration faced reality. Officials quickly realized the massive financial implications of the promise. The state's power sector already operates under severe strain. Subsidized rates and high transmission losses create a fragile financial situation.
The government attempted to modify the promise. It decided to limit the benefit to approximately 2.2 lakh underprivileged households. Even this scaled-down version carries a heavy price tag. It would impose an annual burden of around Rs 1,000 crore on the state exchequer. This amount represents roughly 10% of Jammu and Kashmir's total power outlay.
Why Earlier Proposals Failed
The administration initially developed two concrete proposals. The first plan involved providing 200 free units directly to poor families. At prevailing tariffs, this meant a subsidy of Rs 460 per family monthly. Annually, the cost would reach Rs 5,520 per household. For all 2.2 lakh families, the government faced an extra burden of nearly Rs 120 crore every year.
Senior bureaucrats rejected this proposal outright. They cited the unsustainable financial strain on the power sector. The government then pivoted to a second idea. This plan involved installing two-kilowatt solar rooftop systems for beneficiary households.
After accounting for central subsidies, the state needed to pay Rs 44,000 per solar unit. Implementing this across all target households required a one-time budget of Rs 836 crore. The bureaucracy shot down this proposal as well. They deemed it too costly for the state's finances.
Since the higher bureaucracy operates under Lieutenant Governor Manoj Sinha, who holds financial powers, the government needed bureaucratic approval. Without it, the proposals could not move forward.
The New Solar Rooftop Plan Under RESCO Model
Facing continued pressure, the government is now exploring a fresh framework. It actively considers the Renewable Energy Service Company (RESCO) model. This approach involves collaboration with private partners.
Under the proposed RESCO framework, private vendors would invest in solar rooftop installations. They would use the Build, Own, Operate, and Transfer (BOOT) model. Vendors would set up two-kilowatt solar systems on rooftops of eligible homes.
The government would pay these vendors for the electricity generated. This payment would continue for a period of ten years. Crucially, the rates would be significantly lower than average electricity purchase charges. After the decade concludes, ownership of the solar rooftop would transfer to the household.
Estimates suggest each two-kilowatt system costs about Rs 1,10,000. The central subsidy under the Prime Minister Surya Ghar Mufti Bijli Yojana would cover approximately Rs 66,000. Private vendors would bear the remaining cost. This structure reduces the immediate financial burden on the state government.
Looking Ahead
The Jammu and Kashmir government walks a tightrope. It must balance political promises with fiscal responsibility. The solar rooftop proposal under the RESCO model offers a potential path forward. It aims to deliver on the spirit of the free electricity pledge while managing costs.
Success depends on careful implementation and sustained political will. The administration hopes this innovative approach can finally provide relief to underprivileged households without breaking the state's treasury.
