HC releases more power, tariff hiked

Sandesh Prabhudesai
5 May 2000  

Industries planning to take benefit of the extended income tax holiday and sales tax holiday in Goa have a good news. Lifting the power ban, though partially once again, the high court has permitted release of more power.

But the power would be little more costly than in the past, as the high court order has also coincided with the state government's decision to hike the power tariff by almost 10 to 12 per cent for commercial and industrial purpose.

Following acute power crisis generated in the state due to indiscriminate release of electricity to the ferro alloy units using power as their prime raw material, the court had banned release of power in May 1998, based on a public interest litigation.

The ban was lifted only in December last year after a gap of 19 long months, but partially, while seeking monthly report on release of power. The electricity department has now admitted before the high court that it could release only 10 MW, out of the plans they had to release 31 MW, due to infrastructural problems.

In spite of this, the court has responded positively to the plea to permit the department to release more power as it would be having surplus power of 95 MW by the month end. The permission granted however is to release only 65 MW, which is presently in excess, by maintaining 190 voltage round the clock.

Goa draws only 190 MW from the NTPC at the cost of Rs 1.33 per unit while also purchasing 40 MW from the Reliance Salgaonkar Pvt Ltd Company at the rate of Rs 4.79, the total cost of which goes up to Rs 304 crore. The department is already running into loss due to purchase of private power, which has swollen the per unit purchase price to Rs 3.06.

"The burden of costly power can be reduced only if more new connections are granted and also enhancing load of existing connections", the government stated in the petition filed before the court. It has estimated monthly loss of Rs three crore if the surplus power is not released.

In addition, the government has now hiked the power tariff with an estimated annual revenue generation of Rs 52 crore. "But it cannot cover all the losses", admits power minister Digambar Kamat. He is presently negotiating with the private generator to revise the PPA signed by his predecessor in order to come out of the trap.

While hiking the power tariff, Kamat has also announced 25 per cent rebate for the EHT consumers who consume power between 10 pm to 6 am. Similarly, 50 per cent extra tariff would be charged for its usage between 6 pm to 10 pm.

The only sector which would benefit from the new power tariff structure is the hotel industry as tourism has been now considered as industry. The commercial rates of Rs 4.25 per unit under old category for 500 units would be now charged at Rs 3.60 per unit.

The power in Goa still comes cheaper compared to other states, claims the minister, as it begins with Rs one per unit for domestic and Rs 2.30 per unit for commercial, ranging as high as Rs 4.50 per unit for the ferro alloy units.

Your Comments Please