Jammu, March 16: In a comprehensive fiscal discipline drive, the Jammu and Kashmir Finance Department has issued a strongly worded circular to every administrative department, administrative secretary, and attached offices across the Union Territory, mandating the immediate and complete clearance of all pending electricity bills that have created massive arrears and imposed avoidable financial strain on the public exchequer.
The directive, circulated through Director Finances, Financial Advisors, and all departmental accounting heads, requires urgent assessment and settlement of outstanding dues owed to Jammu Power Development Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL). Senior officials have been personally held accountable for prioritizing these payments amid escalating complaints from power utilities about late payment surcharges, interest penalties, and accumulated liabilities now reportedly exceeding several crores.
Finance Department sources revealed that persistent delays in bill settlements—notorious across hospitals, schools, police establishments, and district offices—have triggered a vicious cycle of additional financial burdens, with some departments facing disconnection threats that could paralyze essential services like water pumping stations, street lighting, and healthcare facilities during peak summer demand.
The circular explicitly addresses fund shortages under relevant budget heads, directing departments to immediately identify savings within their current financial year allocations (2026-27) and process re-appropriation requests through established channels. “No department shall cite fund unavailability as an excuse for non-payment,” the order emphasizes, warning of personal accountability for accounting officers who fail to comply.
To institutionalize long-term compliance, departments must establish dedicated bill-tracking mechanisms integrating with power utility online portals for real-time monitoring and auto-debit facilities where feasible. Monthly reconciliation reports will now be mandatory, with Finance Department audits planned to verify adherence.
This move aligns with Chief Minister Omar Abdullah’s fiscal consolidation agenda, coming weeks after similar directives targeting telephone and water bill arrears totaling ₹150+ crore. Finance Principal Secretary Santosh D Vaidya highlighted during a recent review that electricity dues alone constitute 35% of all inter-departmental liabilities, undermining the UT’s efforts to achieve a balanced budget ahead of the upcoming Union Budget.
Engineering departments, historically the largest defaulters due to project office proliferation, face particular scrutiny. Last year’s CAG audit flagged ₹87 crore in disputed bills linked to incomplete flood protection works and rural electrification schemes, with recovery now tied to officer KRAs.
Power utility officials welcomed the directive, noting it could unlock working capital for grid upgradation and reduce AT&C losses plaguing J&K’s fragile transmission network. However, departmental heads privately express concerns over arbitrary budget cuts forcing such diversions, potentially delaying ongoing capital works.
The Finance Department’s aggressive stance signals zero tolerance for fiscal leakages as J&K navigates post-Article 370 economic stabilization. Non-compliant departments face budget withholding and Vigilance referrals, underscoring the administration’s determination to restore payment discipline across its sprawling bureaucracy
