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After backlash, CM Omar says no proposed 20% hike in power tariff

by Yogesh
November 24, 2025
Reading Time: 5 mins read
After backlash, CM Omar says no proposed 20% hike in power tariff
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Asserts admissions in SMVDU based on merit, not religion

Says govt committed to transparency in auctioning mineral blocks

Jammu, Nov 24: After facing backlash over the proposed 20% hike in power tariffs during peak hours in Kashmir, Chief Minister, Omar Abdullah on Monday said that the issue has been unnecessarily made a point of debate and there would be no hike in electricity rates.

Talking to the reporters on the sidelines launch ceremony of the  first-ever auction of seven limestone mineral blocks in J&K, CM, Omar, according to the news agency—Kashmir News Observer (KNO) said, “I am also the Power Minister and so far no discussion to hike power tariff has taken place, leave aside my signature on the claimed proposal. There is no plan to hike the power tariff before the government.”

The Chief Minister said, “Unnecessarily, this (hike in power tariff) has become an issue.”

Pertinently, the KNO last week had carried a news story about the Kashmir Power Development Corporation Limited (KPDCL) proposing an extra 20 percent surcharge on electricity consumption during morning and evening hours in the Valley.

The KPDCL had sought approval from Joint Electricity Regulatory Commission (JERC) to impose the surcharge on all categories of consumers except for the agriculture sector during peak hours, when demand is at its highest due to the bone‑chilling cold in the Valley.

While talking to KNO, Managing Director KPDCL, Mahmood Ahmad Shah had said: “KPDCL has proposed a 20 percent surcharge on tariff for the peak hours of the day. As of now, no decision has been taken by the regulatory commission.”

The proposal, according to the officials, was a part of the Time of Day (ToD) tariff system, under which electricity costs vary depending on the time of consumption.

However, the proposal evoked strong reactions from different sections of the society.

Leader of Opposition (LoP) and senior BJP leader Sunil Sharma had accused the National Conference of committing “electoral fraud” by promising free electricity before elections and now burdening the people with proposed hefty 20 percent tariff hike.

“Omar Abdullah promised 200 units of free electricity to every household in Jammu and Kashmir. Today, more than a year later, instead of fulfilling that promise, his government is preparing to loot people with an outrageous 20 percent increase in peak-hour consumption charges,” Sharma had said.

Apni Party president Syed Altaf Bukhari had described the proposal as a “grave injustice” to the people of Kashmir.

Peoples Democratic Party MLA Waheed-ur-Rehman Para termed the proposal “cruel” and “catastrophic.” “J&K government must do a real ground assessment before hiking electricity charges.

Peoples Conference general secretary Imran Reza Ansari had questioned the rationale behind the hike, demanding clarity on who within the Power Development Department authorized the “magical midnight-thought tariff ideas.” “

The Kashmir Trade Alliance (KTA) had voiced strong opposition to the proposal. KTA President Aijaz Shahdhar had termed it “arbitrary” and “unjustified,” warning that such a move would severely impact the business community and the general public.

The Kashmir Chamber of Commerce and Industry (KCCI) had also opposed the move, calling it unjustified and an attempt to shift the burden of systemic failures onto the people of Kashmir.

Shrine Board Medical College Row

Reacting on the controversy surrounding the selection of students for the MBBS programme at the Shri Mata Vaishno Devi (SMVD) Institute of Medical Excellence, the Chief Minister stated that admissions were based on merit, not on the preference of boys and girls from any particular community.

In his remarks, CM Omar said, “When the Assembly had passed the bill to establish Shri Mata Vaishno Devi University, where was it written that boys and girls belonging to one particular community will be kept out of it? It was said that admission to the university will be done based only on merit, not on religion.”

His comments came in the wake of protests triggered by the recent MBBS admissions at the Katra-based medical college, which saw 42 out of 50 seats allocated to Muslim students.

The controversy has sparked intense debate, with the BJP and several Hindu groups calling for the institution to reserve seats exclusively for Hindu students.

CM Omar took a dig at senior BJP leader and LoP Sunil Sharma, who had expressed strong reservations over the admission process.

Sharma, alongside representatives from different  organisations, had met Lieutenant Governor Manoj Sinha last Saturday to raise concerns about the Muslim-majority admissions.

Sharma had argued that the process has sparked anger among devotees of Mata Vaishno Devi and the larger Hindu community.

E-auction of limestone blocks

Meanwhile, the Chief Minister reaffirmed his government’s commitment to ensuring transparency in the auctioning of mineral blocks in Jammu & Kashmir, stating that the new e-auction mechanism will unlock economic potential in some of the most underserved regions of the region.

The Chief Minister made these remarks during the launch and roadshow of the e-auction of the first seven limestone mineral blocks of J&K, held at the Convention Centre, Jammu.

The e-auction was jointly commenced by Union Minister for Coal & Mines, G. Kishan Reddy and Chief Minister Omar Abdullah.

In his address, Chief Minister Omar Abdullah said that the e-auction initiative marks a crucial step towards economic revival and sustainable development in mineral-rich but economically weaker areas of J&K.

“At least, we have limestone — and that limestone lies in areas where the economic situation is very bad,” he said.

The Chief Minister expressed gratitude to Union Minister G. Kishan Reddy for proposing a special group within the Ministry of Mines to fast-track mineral exploration in Jammu and Kashmir.

He recalled how J&K’s mineral wealth — including the famous Neelam (sapphire) of Paddar and marble deposits — have remained commercially underutilized for decades.

The CM revealed that Minister Reddy personally intervened and urged J&K to take renewed interest to complete the process.

“In between, Mr. Reddy picked up the phone from Delhi and spoke to me. He asked me to push this forward so that these e-auctions are concluded successfully.”

The Chief Minister said the initiative is aimed at increasing J&K’s own revenue, which currently stands at around ₹500 crore from these mineral blocks.

“When more blocks are identified, I hope our earnings will grow. I look forward to the day when the Chief Minister of J&K will not have to go to Delhi seeking funds. On the contrary, we will be self-sufficient and capable of contributing to the Centre.”

Reiterating his commitment to good governance, Omar Abdullah added, “Our effort is to have these blocks auctioned in a transparent manner. I assure you that the J&K Government will not create any obstacles. Instead, we will ensure that this process — and the next one — is successful. I hope this programme proves beneficial for J&K and for the entire country.”

Speaking on the occasion, Deputy Chief Minister Surinder Choudhary described the day as “historic,” marking a transformative step toward harnessing the mineral wealth of Jammu and Kashmir.

Among others the event was also attended by Additional Secretary, Ministry of Mines, Sanjay Lohiya, Additional Chief Secretary, Mining Department, Anil Kumar Singh, Joint Secretary, Ministry of Mines, Farida M. Naik, senior officials from the Government of India, J&K Government, and representatives from the mining and industrial sectors. (KNO)

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