State to consider Power tariff hike

After blocking the state-run power utilities to apply for a hike in power tariff for a seventh time early this month, the West Bengal government is now considering their view and hinted at a possible tariff hike soon.

Speaking to the media on the sidelines of a CSR summit organised by Public Relation Society of India (PRSI), the state power minister Manish Gupta said, “We are considering the plea by the state-run firms and the matter is in discussion with in our departments.” The state power firms like the West Bengal State Electricity Distribution Company Limited (WBSEDCL) and the West Bengal Power Development Corporation Limited (WBPDCL) were not approaching the state power regulator for a hike, as the chief minister Mamata Banerjee fearing that it may affect the populist image of the government.

The firms were facing difficulties in financial front due to this move. While, WBSEDCL is reportedly having a deficit of rs 200 crore per month, WBPDCL has debts of more than Rs 3,000 crore. Even Coal India Ltd (CIL) subsidiary Eastern Coalfields (ECL) was forced to stop its supply of coal partially and later completely to the West Bengal Power Development Corporation (WBPDCL) because of non-payment of dues, which is to the tune of Rs 550 crore now. When asked about this, Gupta said, “We understand the problems faced by the utilities and will find a solution for it soon.” Though WBSEDCL had raised its rates by 38 paise in May, Banerjee refused it to collect on that rate.

The total outstanding from power sector for CIL as on September 30 this year was about Rs 2,300 crore as against Rs 2,200 crore in August. When asked about the default by the West Bengal utilities, N C Jha, chairman and managing director of CIL, said, “ECL is a company under BIFR based in West Bengal only. How will be able to run the company or supply coal, if they are not ready to pay for it. As per the agreement, one should pay for coal 10 days in advance. But it was not happening and we were suffering.”