Bangalore: Work to Begin on 4,000 MW Power Plant, as Tariff Hike Proposed

From Our Special Correspondent
Daijiworld Media Network

Bangalore, Jun 30:  On a day all five Electricity Supply Companies (Escoms) in the Karnataka sought a 20% tariff hike or 51 paise per unit from the Karnataka Electricity Regulatory Commission (KERC), the State Government has decided to lay the foundation stone for implementing 4,000 mw thermal power plant through the National Thermal Power Corporation (NTPC) at Kudigi in Bijapur district in November.

Karnataka’s energy minister K S Eshwarappa a joint meeting of NTPC and government officials on Tuesday said the project would come up on 3,600 acres at Kudigi. The state’s water resources department has agreed to supply 5.27 tmcft of water from Almatti dam to the project.

The first unit would become operational after 48 months of the ground breaking ceremony, Eshwarappa said promising to provide jobs to locals with NTPC building a school, hospital and provide other amenities to nearby villages.

Former Minister and BJP MLA S K Bellubbi and Bijapur MP Ramesh Chandrappa Jigjinagi, who attended the meeting, said the locals have agreed to provide lands if the Government offered good compensation.

Meanwhile, the state energy department’s principal secretary K Jairaj said the Escoms have filed a petition before the state’s power regulator seeking 20% tariff hike for all categories of consumers. However, the free power to irrigation pumpsets and subsidised supply to Bhagya Jyothi and Kutir Jyothi consumers would continue as the Government has announced subsidy to these categories.

KERC, the three-member quasi judicial body, will take a final decision on whether to increase the tariff and the quantum of increase to be allowed after examining various issues and also eliciting views of Escoms, experts and consumers through public hearings and the entire process is expected to take at least three months. The Government would provide all details, including expenditure and revenue, to the KERC.

Jairaj indicated that the proposed hike is expected to come into effect from January 2010. The supplying companies have sought power traffic hike after a gap of six years. The power tariff was increased by 2% in 2003 when an increase of 22% was sought.

The deficit of 1.13 paise per unit on account of increase in the costs of maintenance, operation, renovation and modernisation works were the major factors for seeking the hike.

It is understood that the Escoms hope to net Rs 1,800 crore to Rs. 2,000 crore from the proposed increase to bridge their combined revenue deficit. The current deficit was Rs 3,900 crore,  highest deficit ever in state’s power sector.

All Escoms have been instructed to improve efficiency level and reduce transmission and distribution loss from 22.3% in 2009 to 15% in 2013, Jairaj said pointing out that it was as high as 27% a few years ago.

Incidentally, the state has suffered a 27% deficit in rainfall till date despite the early onset of monsoon. ``The situation was still bad with coastal Karnataka, which receives maximum rainfall, suffering 42% deficit till date,’’ according to Director Meteorological Centre A Muthuchami.

``We expect the monsoon to become widespread throughout the state in the next four days,’’ he said.

The Indian Meteorological Department planned to set up two more radars in the state to improve weather forecast, he said.