Goa renegotiates power tariff with Reliance, to save Rs 57 cr

Offers power supply at Rs 8.58 per unit instead of the existing average rate of Rs 13.53 per unit

Reliance Infrastructure Limited has agreed to rework the power tariff with the Goa government, following the latter's decision to stop power purchase due to high cost.

State Power Minister Milind Naik told the Legislative Assembly yesterday that the company, which has a power generating plant at Sancoale industrial estate, has offered power supply at Rs 8.58 per unit instead of the existing average rate of Rs 13.53 per unit.

The state government, earlier on the floor of the House, had assured stopping purchase of power from the Reliance Group company from April 1, 2013, onwards to save the exchequer a large financial burden.

The stopping of power procurement was necessitated to adhere to the Joint Electricity Regulations Commission (JERC) guidelines, he said.

"Reliance Infrastructure Limited has given a proposal to shift over immediately to re-gasified liquefied natural gas and have now offered to supply power to Goa government at Rs 8.58 per unit instead of existing average rate of Rs 13.53 per unit," Naik said.

The state expects to save Rs 57 crore due to the lowering of tariff, he said.

Goa government has agreed to accept the offer as discontinuation of power purchase would affect the company's 73 consumers (industrial units), including Mormugao Port Trust, he said.

The government would take minimum of 3-6 months to build infrastructure to supply power to these units, the House was told.

The plant generates 48 MW power, of which 19.8 MW is purchased by the state government, while the balance is allowed to be sold to approved consumers.