In Uttarakhand, power rates may see steep rise

UPCL has already proposed a hike of 67% this fiscal in view of the heavy accumulated losses of nearly Rs 2,000 cr

Tariffs on power in Uttarakhand are to increase steeply for the year 2013-14, thanks to new guidelines issued by the centre to improve the health of loss-making power distribution companies (discoms) in the country under the debt restructuring plan.

"We can't tell you the exact hike, but under the fresh guidelines (of the centre), new power tariffs should be in the range of 15-25 percent. All we can say is, get ready for a higher jump in Uttarakhand this year," said a top government official.

The Uttarkahand Power Corporation Limited (UPCL), the sole government-controlled power distribution agency in the hill state, has already proposed a hike of 67 percent this fiscal in view of the heavy accumulated losses of nearly Rs 2,000 crore.

The losses of the state power utility have been mounting as the UPCL is buying power on higher rates from outside the state. "The power purchase from outside is the main bane of the UPCL's woes," said the official adding that in such a scenario, "a heavy hike is imminent."

Industrialists in the state have already started opposing any big hike in power tariffs. "If we increase power tariffs in a big way, it will adversely affect the further industrialisation process in the state," said Pankaj Gupta, President of the Industries Association of Uttarakhand (IAU).

The main opposition Bharatiya Janata Party has also opposed the move, saying it will create an additional burden on the people, who are already facing an acute increase in the prices of gas, diesel and petrol.

The Uttarakhand Electricity Regulatory Commission is expected to fix annual tariffs for the consumers in the hill state shortly following the culmination of civic bodies polls. The election for the civic bodies was held on Sunday and the results will be announced on Monday.