Sandesh Prabhudesai
27 March 2002
Unlike several states in the country,
the Bharatiya Janata Party government here has reduced
the power tariff from April, while fresh Assembly polls
are ahead.
The average reduction is around seven
per cent, though the commercial and industrial sector
benefits more with almost nine per cent reduction while
the domestic tariff is reduced by only five per cent.
The agriculture sector has also benefited
with almost 20 per cent reduction, as the rates are
brought down to only Re 1 from Rs 1.25 per unit. The
domestic user will also now pay only Re 1 for the first
60 units consumed - a rise of 10 units.
"Our Goan domestic consumer is already
highly subsidised and it cannot be lowered further",
claims chief minister Manohar Parrikar. Goa largely
purchases power from the National Thermal Power Corporation,
besides a mini private power project.
According to power minister Digambar
Kamat, the department has gone for reduction in order
to pass on the profits made by the department as a result
of his power revision policy. This is the first time
it has generated a revenue of around Rs 430 crore against
total expenditure of Rs 396 crore.
He expects further rise in revenue
next year, around Rs 505 crore, with profitability shooting
up to 25 per cent. In spite of reducing the tariff by
seven per cent, he also expects 15 per cent growth in
the revenue.
Due to drastic reduction and rationalisation
of various slabs in the commercial sector, Kamat also
expects more industry to come in while the existing
industry may also enhance its production.
From the normal tariff rates between
Rs 2.80 to Rs 4.35 per unit, the new revision policy
has fixed several slabs of tariff between Rs 2.75 to
Rs 4. Besides small hotels, shops and establishments,
it will also benefit the extra high-tension sector like
steel melting units.
While the Congress these days attacks
the BJP for striking a deal with the power guzzling
steel units, the cabinet today decided to drastically
reduce the tariff for the consumption of above 500 units
per mega watt from Rs 4.50 to Rs 2.50 per unit.
The chief minister however justifies
the action, claiming that hardly any power guzzling
unit was crossing the slab of 500 units, which may now
begin with the revised tariff structure. He however
points out that the heavy rate of demand charges imposed
earlier to avoid theft still remains unchanged.
According to Kamat, the annual revenue
generation from 24 power guzzling units during the Congress
regime was hardly Rs 20.16 crore, while the state today
earns Rs 60 crore from 15 units, who are still continuing
with the production while some have vanished.
With a faulty power policy and concessions
thrown at the power guzzlers, the department had started
making losses since 1990. As a result, one
former power minister Mauvin Godinho was even arrested
in a multi-crore power rebate scam while the high court
had banned release of power to any industry since May
1998.
Besides taking major steps to improvise
the power situation in the state, Goa also started selling
surplus power from the allocated NTPC quota. The tourist
state however still pays around Rs 2.2 million every
day for around 1.5 million surplus power, which remains
unutilised.