KPDCL Advocating New Revenue Collection Policy Linking Salary Disbursement to Cleared Electricity Dues

KPDCL Advocating New Revenue Collection Policy Linking Salary Disbursement to Cleared Electricity Dues

Kashmir Power Development Corporation Limited (KPDCL) has asked all Deputy Commissioners (DCs) in Kashmir to make the clearing of electricity dues mandatory before releasing salaries or payments to employees and contractors.

The power distribution utility has asked DCs to issue orders stating that funds for salaries or contractor payments could only be released after electricity dues have been settled. In a missive to DCs across Kashmir, the Managing Director of KPDCL outlined the rationale behind the directive to make clearance of dues mandatory before salary and payment releases.

According to it, KPDCL is responsible for collecting revenue from electricity charges from all consumers, including government employees and contractors in the Kashmir division. With the government having set revenue targets for KPDCL for the current financial year and regular high-level review meetings being held, timely recovery of dues is critical.

According to sources, the Finance Department has also issued directions in the past for the timely recovery of power dues from government staff. “Keeping these factors in mind and to ensure the realisation of revenue recovery targets fixed for this financial year, the KPDCL MD has requested DCs to issue circulars ordering all DDOs, District and Treasury Officers to only draw and disburse salaries to staff after electricity dues have been cleared. The circular also requires contractors to clear their power bills before receiving payments for development works,” the sources said.

The KPDCL officials said that this directive would go a long way in helping KPDCL achieve its revenue targets and secure the J&K exchequer.

Managing Director of KPDCL, Mussarat Islam, said that the corporation was working towards enhancing revenue realisation as it was pivotal to providing round-the-clock power supply to the consumers. “We have also launched a drive to snap connections of defaulters,” he said. “Improving revenue collection through timely payment of dues is critical for KPDCL to deliver on its mandate of providing reliable power supply across Kashmir. The directive to make clearance of dues mandatory before government salaries and contractor payments is part of this larger effort to shore up revenues.”

He said that snapping connections of chronic defaulters was another measure being deployed to crack down on non-payment of dues.

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