Guwahati: Ahead of a possible power tariff hike in the state, the Assam government announced a Rs 200 crore subsidy package on Monday for this year, which will benefit 26 lakh customers across the state.
“The cost of power production has gone up tremendously in the last 2-3 years,” Assam Power Minister Pradyut Bordoloi told reporters here.
“It is likely that the power regulatory commission will hike the tariff in the state. However, to give relief to the common people, we have decided to offer a Rs 200 crore subsidy in this year.”
He said BPL (below poverty line) families will be offered a rebate of Rs 1.10 per unit up to a maximum consumption of 30 units every month, while it will be Rs 0.70 a unit for up to 120 units a month for the APL (above poverty line) customers.
“This scheme will cover 10 lakh BPL families and 16 lakh APL customers across the state.
“This type of power subsidy will be offered for the first time in the state,” Bordoloi said, adding that the maximum sanctioned load of the household has to be less than 5KW only.
The Rs 200-crore subsidy will be provided to the Assam Power Distribution Company (APDC), which will adjust the monthly power bills accordingly, he said.
Talking about the power tariff, the Minister said the regulatory body is currently evaluating the scenario and a hike is imminent considering rising production cost in the last three years.
“The cost of natural gas has gone up by 165 per cent to Rs 5,091 per 1,000 standard cubic metre now from Rs 1,920 in 2012. Likewise, the coal price has also shot up by 85-150 per cent in this period,” Bordoloi said.
The cost of hydro power generation is less compared to the other modes, but in this case also expenses related to transportation, transmission and other factors have increased by 30 per cent since 2010, he added.
“In such scenario, it is very difficult to hold the power tariff.
“In fact, power rates are going up across the country.
“However, to give relief to the poor men, we are offering the subsidy,” Bordoloi said.
APDC facing Rs 900 crore loss
Meanwhile, facing a Rs 900 crore annual revenue loss by Assam Power Distribution Company, the state government also said it will implement the Ring Fence System, a technological innovation to prevent stealing of power at a total expenditure of Rs 875 crore.
The Ring Fence System will be set up in 72 towns along with the state capital under the Central government’s Restructured Accelerated Power Development & Reforms Programme (R-APDRP).
“To stop misuse of power, mainly theft, we are going to implement an advanced technology-based system, called Ring Fence System, in Guwahati and another 72 towns initially,” Bordoloi said.
“The total expenditure of the project will be Rs 875 crore.”
The project will receive most of its funds from the Centre, with the Assam government only bearing 10 per cent of the total cost, he added.
“The project work has already started and we hope to complete the first phased in the next two years.
“With operationalisation of this system, we hope to bring down the state’s power loss to 15 per cent from 28 per cent currently,” the minister explained.
The government is very serious on stopping power theft and it may even consider bringing in a new law to punish the guilty, the Minister said without sharing any detail.
Talking about the functioning of Assam Power Distribution Company Ltd (APDCL), Bordoloi said, “In the last two years, the company has added 16 lakh new families.
“However, it has been able to collect payment for power consumption from only 18 per cent of these new customers.”
Currently, the stat-owned APDCL’s monthly expenditure stands at Rs 300 crore, while its income is only Rs 225 crore.
He said if APDCL can bring down the power loss by just one per cent even, it will be able to save Rs 9 crore a month.
“When we started power reforms in 2005, the then Assam State Electricity Board had a debt of Rs 5,000 crore.
“The government took the entire responsibility of this and set up the APDCL as a debt-free entity.
“Since then, it has been working on to connect 26,000 villages with electricity,” Bordoloi said. (PTI)