Government to bear additional burden of Rs 120 crore
MAPUSA
With assembly elections just six months away, the State government decided to bite the bullet by putting off an impending power tariff hike, and, instead, agreed to bear the additional burden of Rs 120 crore.
“The electricity department had recommended hike in tariff but the government has decided not to pass on the burden to the consumers. The cabinet has approved to bear the additional cost of Rs 120 crore entailed by the tariff hike,” said Chief Minister Pramod Sawant in a post-cabinet briefing.
The Joint Electricity Regulatory Commission (JERC), which decides on the power tariff, had accepted the proposal of the State electricity department to mop up additional revenue of Rs 122.75 crore by increasing the tariff for domestic and high tension consumers for 2021-22, while the balance revenue gap amount of Rs 178.65 crore was proposed to be recovered through budgetary support from the State government.
The electricity department had submitted a standalone revenue gap of Rs 301.40 crore at the existing tariff and Rs 178.65 crore at proposed tariff for 2021-22.
The decision to keep the power tariff hike in abeyance comes soon after the government’s recent announcement of allotting 16,000 litres of free drinking water to domestic consumers in the State.
According to the government, around 1.5 lakh households will benefit from the decision, which will be implemented from September 1.
