J&K clears Rs 14,164 crore legacy power dues
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By Shafat Malik
- Comments 0
- 07 Apr 2026
Current liabilities at Rs 886 crore
Srinagar, Apr 06: Jammu and Kashmir has cleared its entire legacy power dues of Rs 14,164 crore, with current outstanding liabilities standing at Rs 886 crore as of March 27, 2026, according to official data accessed by Rising Kashmir.
The data shows that the dues pertain to the Jammu and Kashmir State Power Trading Company Limited, which had accumulated legacy arrears of Rs 14,164 crore as on June 3, 2022. These arrears have now been fully cleared under a central framework that mandated structured repayment of past liabilities.
As per the latest figures, there are no balance legacy dues remaining in the Union Territory after payment of instalments. The entire outstanding amount of Rs 886 crore is classified as current dues, which fall within the prescribed payment cycle.
The data indicates that all dues up to June 3, 2022 were classified as legacy arrears under rules notified by the Government of India on June 3, 2022. These rules required distribution utilities to reschedule past liabilities and clear them through equated monthly instalments.
The framework also set timelines for payment of current dues to generating companies, transmission companies and power traders, with provisions to regulate supply in case of non-compliance.
The data further outlines the reasons for delay in payments by distribution utilities which include regulatory disallowance of expenses, a continued gap between the average cost of supply and the average revenue realised, and delays in release of subsidies and dues by state governments.
It states that multiple steps have been taken to improve payment discipline including rules for fuel and power purchase cost adjustment to ensure recovery of costs, and standard procedures for timely accounting and payment of subsidies.
The data also notes that the Revamped Distribution Sector Scheme, launched in 2021, has sanctioned works worth Rs 2.83 lakh crore across the country. The scheme links release of funds to improvements in operational and financial performance of utilities.
It further states that additional borrowing limits of 0.5 per cent of Gross State Domestic Product have been linked to power sector reforms, along with norms for sanctioning loans to utilities based on performance.
On financial restructuring, the data shows that Jammu and Kashmir had issued bonds worth Rs 3,538 crore under the Ujwal DISCOM Assurance Yojana as part of restructuring of distribution utility liabilities. No bonds have been issued under the scheme in the last three years.
The figures show that while legacy dues in Jammu and Kashmir have been cleared under the repayment mechanism, current dues of Rs 886 crore remain within the payment framework laid down under the rules.
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