CM unplugs poor from tariff hike

CHENNAI: Chief Minister J Jayalalithaa on Tuesday underscored that her government has cushioned the poor from the impact of the power tariff hike by bearing the cost of the electricity used by them by way of paying subsidies to the Tamil Nadu Electricity Board.Announcing a partial rollback in the power tariff hike in the State Assembly, the CM recalled many measures taken by her government: bearing the power charges for all hutments benefiting 14 lakh families as well as power used by farmers, providing Rs 1.50 as subsidy for each unit used by those who consume 100 units in two months, `1 as subsidy for those who consume 200 units in two months and 50 paise as subsidy for those who use upto 500 units. Subsidies are in place for power consumed by places of worship and powerlooms.  For those who use above 500 units, though the government has not announced any subsidy as they are being charged less than the generation cost of the power.Giving a detailed account on the present fiscal position of the TNEB, the CM said the TNEB sold surplus power to other States during the AIADMK regime between 2001 and 2006 and received many awards for the efficient functioning of thermal power stations at Mettur and North Chennai. Installed capacity was increased by 2,518 MW at that time.Contrary to this, the Board plunged into a debt trap during the DMK regime. The accumulated losses of the Board stood at Rs 50,000 crore and loans availed touched Rs 45,000 crore.  After the AIADMK government assumed office in May 2011, it took many steps for efficient functioning of the thermal power stations. The percentage of transmission and distribution loss have also been brought down. When compared to the national average of 27 per cent loss, Tamil Nadu’s percentage was just 18.During 2011-12 alone, the Tamil Nadu government has provided Rs 7,913.45 crore financial assistance to the TANGEDCO. The CM also pointed out that the State government had revived the Rs 8,000 crore Udangudi power project (1,600 MW).  With a view to set right the gap between generation cost and revenue through distribution (Rs 9,741 crore), TANG-EDCO filed a petition before the TN Electricity Regulatory Commission and the Commission gave its orders on March 30 enabling the Board to get an additional income of Rs 7,874 crore. Of this, the State government has agreed to pay Rs 1,118.44 crore as subsidy.  Comparing the power tariff in Tamil Nadu with that of some other States, the CM said the rates here are lower even after the hike.