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CM backs power tariff hike

Press Trust Of India  |  Chennai/ Bangalore 

Karnataka chief minister B S Yeddyurappa today supported the demand by power supply companies for a tariff revision on which the government was expected to take a decision in a couple of days.

“The Power Transmission Companies are facing huge losses now. It is inevitable that we increase the power tariff,” Yeddyurappa told reporters on the sidelines of a function here. He said the quantum of hike would be decided after a meeting with department officials concerned.

He ruled out the state facing a power crisis in the wake of depleted water storage level in its hydel reservoirs and expressed optimism that the state would get good rains in the next two to three days. On some organisations demanding that Kodagu be declared a separate state, Yeddyurappa said, “It would not be allowed.”

This assessment by the chief minister comes a day after the state's energy minister K S Eshwarappa, said that the power situation was improving even as various parts of state was gripped by power cuts. The state bureaucracy also added that it did not see any cause for alarm on this front. Top officials of Karnataka Power Corporation Limited added that the situation is under control and the reason behind frequent power outages is not because the state is unable to meet the demand and it is more to do with transmission and distribution losses.

Industry information indicate that some technical snags in Raichur Thermal Power Station and Bellary Thermal Power Station have been fixed, the situation is improving. On top of shortage of generation capacity in the state, Karnataka is also talking to Centre over increase its share from the central grid. Karnataka gets 1,543 Mw from the Centre, which is according to government officials needs to be increased.

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First Published: Tue, June 30 2009. 00:57 IST