Srinagar, September 16, 2025 : Jammu and Kashmir Chief Minister Omar Abdullah on Monday dismissed all speculation regarding the privatisation of electricity in the Union Territory, asserting that his vision is focused on strengthening and reforming the power sector to boost economic prosperity.
Addressing the gathering on the occasion of the 58th Engineers’ Day at SKICC Srinagar, the CM paid tribute to Bharat Ratna Sir M. Visvesvaraya for his pioneering contributions to engineering in India.
Omar Abdullah emphasized that electricity generation and efficient distribution are central to transforming Jammu and Kashmir’s economy.
“We are not talking about privatisation. If we reduce our losses, improve billing efficiency, and enhance revenue generation, there will be no need for it. My vision is to strengthen and reform the power sector in J-K,” he said.
He pointed out that reducing power sector losses is a crucial first step before tapping into the region’s vast hydropower potential to support economic growth.
“This is the only way to improve the financial situation of J-K. We should aim to generate electricity and sell it to other regions, particularly when their production falls short,” the CM added.
Omar Abdullah also addressed the growing competition from renewable energy sources, noting that while solar power is now available at Rs 2 to Rs 2.5 per unit, hydropower remains the most viable long-term solution despite high initial installation costs.
“Over time, the per-unit cost of hydroelectricity reduces significantly, making it sustainable in the long run. We must continue developing hydro projects while improving overall system efficiency,” he remarked.
Reaffirming the government’s approach to tariff rationalisation, the CM stressed that pricing should reflect people’s ability to pay, ensuring a fair balance where the rich contribute more and the poor pay less.
Taking personal responsibility, CM Omar Abdullah said,
“I chose to hold the Power Development Department myself because if we really want to make J-K prosperous, the most important sector is Power.”
He urged the officials present to maintain focus on reducing losses and improving operational efficiency.
The CM also lauded landmark initiatives such as the Baglihar Hydro-Electric Project, which significantly transformed the region’s power scenario despite facing challenges like the lack of counter guarantees.
