From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Jan 13: With demand for power constantly on the rise in Karnataka, the State Cabinet has approved a power purchase plan for the next two years.

Addressing reporters after a meeting of the Sate Cabinet, Medical Education Minister V S Acharya said the state would purchase 1,000 MW daily, which would cost around Rs 2,500 crore to Rs 2,800 crore per annum during 2012 and 2013.

The average cost of power purchase per unit would be about Rs 4.87 for the year 2011-12 with peak hour cost going up to Rs 5.81 per unit.

During the peak hours the State Government would purchase additional 300 MW, the minister said.

During September 2010 and May 2011, the State Government purchased 1,000 MW per day at a total cost of Rs 3,847 crore.

Following the purchase of power through competitive bidding, the government supplied power round the clock in Bangalore city and 23 hours in tier II cities.

The rural areas have been provided 12 hours of single-phase power and six hours of three-phase power.

The State Cabinet on Friday ratified the purchase of power during this period, he said.

The Karnataka Electricity Regulatory Commission (KERC) had projected a requirement of 5,000 million units between 2010 and 2013 and allowed the Government to purchase power through the two bid route – long term and short term -- depending on the need.

The KERC permitted the State to purchase at a minimum of Rs 3.75 per unit and a maximum of Rs 5.08 per unit.

During 2011-12, the Government would purchase about 990 MW daily, Dr Acharya said.

To tide over the crisis during the summer months, he said adequate water level at all reservoirs has been maintained. The Udupi Power Corporation Ltd and the Bellary Thermal Power Plant had also helped the State greatly.

Around 40 million units hydro power would be generated daily, he added.