3-year power purchase bill to touch Rs 6,800 cr

THE GOAN NETWORK | 23 hours ago

PANAJI

With negligible internal power generation, the State government will spend a massive Rs 6,805.6 crore on purchasing electricity over the next three financial years to meet Goa’s growing demand, according to information tabled on the floor of the House.

The data shows that the State will spend Rs 2,178.95 cr on power purchase in 2026-27. The expenditure is projected to rise to Rs 2,266.39 cr in 2027-28 and further to Rs 2,366.26 crore in 2028-29, reflecting a steady increase in electricity spending.

A major portion of the expenditure -- over 70 per cent will go towards buying power from central generating stations, while the rest will be spent on renewable energy procurement. Only a marginal share comes from internal power sources.

In 2026–27, Goa will pay Rs 1,558.39 cr to central generating units and Rs 495.11 cr towards renewable power purchase. In 2027-28, power purchase from central units is pegged at Rs 1,605.14 cr, with another Rs 495.11 cr earmarked for renewable energy -- a figure expected to remain unchanged in 2028–29. The State will spend Rs 1,633.29 cr on central sector power in that year.

Spending on internal power generation sources remains comparatively low, projected at Rs 125.45 cr in 2026–27, Rs 166.14 cr in 2027–28 and Rs 211.85 cr in 2028–29.

Despite the rising power purchase bill, the government continues to generate significant revenue through electricity sales. In the current financial year, the State has already spent around Rs 1,473 cr on purchasing power till December, while earning Rs 2,490.36 cr through power sales.

Similarly, in the previous year, the State earned Rs 2,970 cr from electricity sales against a total power purchase expenditure of Rs 1,980 cr.

The government had increased electricity tariffs by four per cent in October last year, a revision that will remain in force until the end of March this year.

Power Minister Ramakrishna Dhavalikar said Goa continues to offer among the lowest power tariffs for domestic consumers in the country. He pointed out that more than 60 per cent of domestic consumption falls within the first two tariff slabs 0–100 units and 101–200 units, where the current tariffs are Rs 1.95 and Rs 2.90 per unit respectively.

He added that domestic consumers are heavily cross-subsidised by commercial and industrial consumers in the State. “The Joint Electricity Regulatory Commission undertakes a comprehensive assessment to balance consumer affordability with the financial sustainability of the utility, while also ensuring the stability and efficiency of the power sector,” the minister said.

Dhavalikar also said the Time-of-Day (ToD) tariff structure has significantly benefited high-tension consumers, whose major consumption occurs during solar hours. During this period, electricity is billed at 80 per cent of the normal rate, reducing their overall power costs while encouraging usage during periods of high solar generation and supporting grid stability.


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