MP likely to reduce power tariff by 2015

Plans roof-top solar power units; investment plan of Rs 10,000 crore underway

By end of next year, the Madhya Pradesh government will start reducing existing power tariff. An investment plan of Rs 10,000 crore is underway for the purpose. "If we can bring down our Aggregate Technical and Commercial (AT&C) losses to 15% or less we will be able to reduce power tariff. We have to invest Rs 10000 crore and we have achieved fifty percent of the target. We will be able to reduce power tariff by December 2015," Rajendra Shukla minister state energy minister said. State will also promote individual roof-top solar power units at each house in coming years.

As of now state losses have gone down to 25.66% from nearly 50% in 2003, when the ruling BJP took saddle from the Congress government. The AT and C losses of the state stood at 37.79% during 2009-10 and came down to 36.45% in 2010-11, 30.99% in 2011-12, 27.35% in 2012-13 and 25.66 during 2013-14.

Also the power generation companies have to improve performance on income generation and government has to reduce subsidies. According to the state government plan, an amount of Rs 2500 crore will go to tariff subsidy in 2014-15, Rs 600 crore will go to free power supply, Rs 503 crore will be allocated for working capital of various power generation companies, clearance of dues of farmers will consume Rs 240 crore, waiver to below poverty line families will require Rs 100 crore, and new connection for farmers will put an additional financial strain of Rs 227 crore on the government.

"We will have to invest a total of Rs 4170 crore although earnings of power gen companies have gone up from Rs 18000 crore to Rs 22000 crore, the rising cost of fuel and these expenses have escalated our expenses to 27000 crore. If we can bring down income and expenditure at par we will be able to reduce power tariff," the minister said.

The state has attained a power generation capacity of 13998 Mw against 4673 Mw available during 2002-03. This also includes power generation of 595 Mw through renewable energy sources.

The peak demand against the available capacity is expected to touch 9832 Mw of power during 2014-15 which was 9758 Mw during 2013-14 and 4652 Mw during 2002-03.

"We are promoting renewable energy like solar and wind power. An ultra-mega solar power plant is expected in Rewa district. Our total solar production will be 3000 Mw in coming years," the minister said adding, "We are planning to set up 5-Mw solar power units on selected buildings, if successful we will plan individual roof-top solar power plants." There are 10.95 million consumers of power in the state during 2013-14 against 6.4 million in 2003-04.