Power sector in Jammu and Kashmir has reached a critical juncture, registering its highest-ever revenue realisation of over Rs 5200 crore in the financial year 2025–26. The milestone reflects a decisive improvement in billing efficiency, recovery, and loss reduction, achieved through consistent structural reforms. The reduction of AT&C losses in several subdivisions to below 15 percent is not just a technical achievement but a marker of systemic discipline, showing that accountability in distribution can directly translate into financial stability. Yet, the sector’s progress is shadowed by the rising cost of power procurement, which continues to consume nearly 87 percent of the total revenue requirement, leaving little fiscal space for expansion or innovation.
The steady rise in electricity demand, with per capita consumption climbing from 1171 to 1488 KWh over nine years, underscores the urgency of building indigenous capacity. Total consumption has grown to over 20,800 million units, driven by households, businesses, and institutions, reflecting a society increasingly dependent on reliable energy. But the paradox remains: while demand grows and revenues improve, dependence on imported electricity persists, exposing the sector to volatility in costs and supply. This imbalance can only be corrected by harnessing the region’s vast hydropower potential, estimated at 18,000 MW, of which less than a quarter has been tapped. The operational capacity of 3540 MW is modest compared to the identified potential, and the commissioning of four major projects by 2028 will nearly double capacity, but the pace of development must accelerate if the sector is to achieve true self-reliance.
Transmission and distribution infrastructure has expanded significantly, with capacity rising by 44 percent since 2020 to over 34,800 MVA and a network spanning 1,76,601 circuit kilometres. These investments are vital in reducing outages and ensuring quality supply, but they must be matched by reforms that address fiscal sustainability. Revenue growth cannot remain hostage to rising procurement costs, and efficiency gains must be consolidated into long-term resilience. The sector’s future lies not in short-term fixes but in structural transformation; expanding hydropower, diversifying sources, and embedding accountability at every level of distribution.
The challenge ahead is not only technical but strategic. Energy security in Jammu and Kashmir cannot be built on dependence; it must rest on the ability to generate, transmit, and distribute power from within. Hydropower projects under construction offer a pathway, but they demand timely execution and transparent management. Delays or inefficiencies will only deepen the reliance on imports and erode the financial gains achieved through improved billing and recovery. The sector must also explore complementary sources, including solar and wind, to diversify its energy mix and reduce vulnerability to seasonal fluctuations in hydropower generation.
Equally important is the need to align energy planning with social and economic priorities. Rising consumption reflects not just demand but aspiration, as households, industries, and institutions seek reliable power to sustain growth. Meeting this demand requires more than infrastructure; it requires a vision that integrates energy with development. Affordable, reliable electricity can transform education, healthcare, and industry, but only if the sector is managed with foresight and discipline. The gains of today must be safeguarded against the pressures of tomorrow, ensuring that progress is not undone by fiscal imbalance or policy inertia.
The gains in revenue realisation and infrastructure expansion are significant, but they must be seen as the foundation of a larger transformation. The region’s energy future depends on moving beyond dependence on imports to harnessing its own resources, ensuring that rising demand is met with stability and reliability. The current trajectory offers promise, but only sustained commitment to reform and resource development will ensure that this promise is