Assam govt justifies power tariff hike proposal

The Assam government today, defending a recent proposal to hike power tariff, said 80 per cent of the state-run distribution company's annual budget is used for the purchase of electricity.
The remaining 20 per cent is utilised for salary, operations and maintenance purposes of Assam Power Distribution Company Ltd (APDCL), the Minister of State for Power, Pallab Lochan Das, said in the Assembly.
"The power tariff is decided on profit and loss of the distribution company. We need Rs 5,885 crore for running it this year, out of which 80 per cent will go only for purchase of power," he said.

"The power purchase cost is higher in Assam as our own generation is very less. Our transmission cost is very high, Das said.
"We are trying to reduce power purchase cost. The current rate is only to meet our expenses," he added.
He also pointed out that power theft is a serious issue in the state and urged the ministers of other departments to look into the issue.

"The agriculture department gives pump sets to farmers. These are running, but we are not getting the bills. There are lots of e-rickshaws on the roads and these are being charged everyday. Again we are not getting any bills for that. I request the transport and agriculture ministers also to see these," Das said.

Earlier, Asom Gana Parishad (AGP) MLA Pabindra Deka raised the issue of frequent power tariff hike by the APDCL and asked why the organisation is not realising the unpaid dues from various government departments.
At present, over 3,000 villages in Assam are not electrified, no new projects have started, power theft is rampant, unpaid dues are rising and rampant corruption still exists, he said.
"The only thing APDCL does, is raising the power rates at regular intervals," he added.