Power tariff cheaper in state than other places, says govt

  • HT Correspondent, Hindustan Times, Jaipur
  • Updated: Feb 17, 2015 13:18 IST

According to the state government, electricity charges in Rajasthan are cheaper than Delhi and Maharashtra even while consumers often complain about high power tariff in the state.

Power tariff in Rajasthan stands at Rs. 6.35 per unit while the same costs Rs. 9 per unit in Delhi and Rs. 8 per unit in Maharashtra, principal secretary of the energy department Sanjay Malhotra recently told an industrial delegation in Jaipur.

“The cost of supply is Rs. 8.82 per unit, including Rs. 2 per unit, as interest on loans. However, the government supply stands at Rs. 5.20 per unit that incurs a loss of Rs. 3.50 per unit,” he said.

Malhotra added that the peak demand shortage in Rajasthan is 0.1% as compared to the national average of 3.2%. Similarly, energy deficit is 0.2% as compared to the national average of 4.1%. “The situation in Rajasthan is far better than other states,” he said. The principal secretary said the Rajasthan government was looking forward to encouraging public private partnership (PPP) in power transmission.

“Four transmission projects have already been finalised. We are looking for more. Besides this, we are also looking at checking transmission and distribution (T&D) losses which are quite high at present,” he said.

He also showed grave concern over the increasing debt burden. “The power sector overdue payments are Rs. 70,000 crore over 110 days which is the main problematic area. However, due to easy and affordable land availability and high sunlight intensity, investment in the solar sector is picking up in the state,” he said referring to the recent investment commitments made by business groups like Adani, Reliance and Essar.

During the meet, the Rajasthan Renewable Energy Corporation Limited managing director BK Dosi said the state government was seriously looking into reforms in the power sector. “The government is committed to create a sustainable and commercially-viable power distribution system, robust transmission system for power evacuation and promote renewable energy, develop energy security and move towards low-carbon economy to address climate change concerns,” he said.

Malhotra added that the environment was conducive for investment in Rajasthan and companies were lining up for huge investments in the solar sector. “We are getting good response from the industry. We will soon become self-sufficient in power if all these proposals materialise,” he said.

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