AJK bad governance eating up Mangla Dam royalty

Ishfaq A Mughal

After almost four decades of Mangla Dam Project, the curtain has been fallen from the misleading statements by elected goverments of Azad Kashmir Government by the disclosure that it is receiving billions of rupees in the shape of cheaper electricity annually from Federal Government.

The AJK Government was telling so far to its masses that the federation is not paying royalty of Mangla Dam in any shape from last four decades when Mangla Dam was build in  late 60s.

Reliable sources of the Ministry of Water and Power told this scribe that the Azad Kashmir government is receiving royalty on Mangla Dam from Federal Government from day one under an agreement signed between Federation and AJK.

The Federation is providing electricity at Rs 2.59 per unite from Islamabad by giving subsidy almost five rupees per unite which is worth of billions rupees annually but the AJK government doesn’t pass on the royalty to its consumers and using it for meeting of public expenditures. They said that the royalty has become almost unproductive as its power tariffs are equal to the rates of other nine DISCOs of the country. In this situation which is fabricated by the AJK government, the power production cost is Rs2.59 per unite but distribution cost is Rs.5 per unite in the State.

For providing the relief to the AJK masses, the Federation is almost defaulter of three DISCOs worth of Rs11 billion, out of Rs7.6 billion of IESCO, Rs3.10 billion of PESCO and Rs1.2 billion of GESCO.   

When this scribe contacted with Secretary Electricity Department of Azad Kashmir Fiaz Ali Abbasi, he confirmed the Royalty on Mangla Dam and said, "the AJK Government is buying electricity on bulk at the rate of Rs 2.59 per unite. The Federal government is providing cheaper electricity for relief of masses but for meeting of operational cost of the department and expending and up-gradation of electricity network in AJK. It is not possible for us to sellout power to the consumers at cheaper rate as how it is possible to fix cheaper rates from rest of Pakistan”.

Replying a query, Abbasi admitted the inefficiency and bad governance of his department and said “when we examine the matter of line losses which is tough the level of 37 percent, than we feel the inefficiency of the department but inefficient power transmission system is also a matter of concern”. He has not the answer of the question; have the department plan of action for reducing the line losses of electricity.   

It is important to mention here that the technical line losses of electricity should be remained between 10 to 12 percent but, hence, the sector is in difficult due to total exemption for usage of electricity to the staff of the Department and power theft trend which is being emerged with the help of some black sheep of the department. Due to in-competency and poor governance, the AJK Government has very limited financial avenues and exercising such easy practices to meet the public expenditures. Indeed, the AJK Government has not proper infrastructure of revenue collections from well-off segment of the society.

According to the figures of Electricity Department of AJK, out of total consumption almost 500 megawatt, the domestic consumers consume 69 percent, commercial consumers 13 percent, industrial consumers nine percent and others consumer consumes also nine percent in AJK.

The figures show that the AJK masses are paying huge amount on the power to the AJK government. On monthly consumptions, the domestic consumer is paying Rs.93 on 50 unites, Rs 4.54 pr unite on 51-100 unites, Rs 6.60 per unite on 101-300 unites, Rs. 10.65 per unites on 301-700 unites, Rs 13.29 per unite on more than 700 unites. Commercial consumers are paying almost Rs.20 per unite and Industrial sector is paying at least Rs.13 per unite. These slabs and rates are same like IESCO.