You are here: Home » Economy & Policy » News
Business Standard

Kerala To Raise Power Tariffs

At a special meeting of the state Cabinet held in Thiruvanathapuram on August 3, the Kerala government has decided to raise electricity tariffs to overcome the power crisis.

Kerala, which depends on hydel power in a big way, has been witnessing a drop in the water level in hydel projects' reservoirs.

The drop in the water level may force the state to depend more on thermal power stations.

The generation of the thermal power being more expensive than the hydel power, it will result in an additional burden of around Rs 85 crore on the Kerala State Electricity Board.

While the state power minister, K Sivadasan, is insisting on a steep across-the-board increase in power tariffs to pull the KSEB out of the red, the industry minister, P K Kunhalikutty, is opposed to any hike in the tariff for commercial consumers.

He emphasised that an increase in tariff for industry was untenable on the eve of the Global Investors' Meet, which is scheduled to be held in November.

On account of this divergent perceptions, chief minister A K Antony said the increase in power tariffs was inevitable.

However, the exact hike would be finalised only in the next meeting of the state Cabinet.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, August 06 2002. 00:00 IST