J&K’s power liability goes up to Rs 12,500 cr

J&K’s power liability has accumulated to Rs 12,500 crore. The government owes major portion of this amount to outside power companies.

NHPC and NTPC are major power suppliers to J&K.

According to officials, the concern from the Power Department is the high rate of interest, 18 percent, being charged by the supplier companies.

“About 1.5 percent compound interest per month is being charged by the outside companies on the outstanding amount,” a senior government official said.

He said that of the total Rs 12,500 crore liability, Rs 2000 crore is actually the interest for non-clearance of bills on time.