Anticipating a hike in electricity tariff due to escalation in prices of natural gas and coal, the Assam Government has decided to give subsidy on power rate to both BPl and APl consumers.
“There has been 165 per cent increase in natural gas price in last two years, while in case of coal the price has gone up to 150 per cent. Though the electricity tariff is decided by Assam Electricity Regulatory Commission and Government has no say in it, it is our responsibility to take care of the consumers if the tariff is hiked. We anticipate that there will be rise in the tariff because of increase in prices of natural gas and coal. That is why the Government decided to provide subsidy to domestic power consumers,” Power Minister Pradyut Bordoloi said here on Monday.
Bordoloi said that the Government will subsidise the tariff up to 30 units at the rate of Rs 1.10 per unit for BPl families, while for ABl up to 120 units at the rate of 70 paise per unit. “There are 10 lakh BPl families and 16 lakh ABl families who will avail the electricity tariff subsidy,” the Power Minister said. Political observers said that the Government’s decision is not to further enrage electorates, who are burdened by the price rise on essential commodities, ahead of upcoming lok Sabha polls. However, Bordoloi said that it has nothing to do with the polls.
While the Government has also decided to provide Rs 200 crore on a yearly basis as assistance to the Assam Power Distribution Company, the Power Minister has categorically asked the company to gear up its revenue collection mechanism so that it is not in the red. “The distribution company’s monthly expenditure is Rs 300 crore, but its revenue collection is Rs 225 crore. Out of 16 lakh houses provided with electricity connection in last three years, the company could collect revenue from only 18 per cent of the houses. If this shortfall is not made up, the company will be in the red soon,” Bordoloi said.