The Hindu : Opposition parties fear hike in power tariff

Online edition of India's National Newspaper
Monday, Jan 19, 2004

Andhra Pradesh

Andhra Pradesh

Opposition parties fear hike in power tariff

By Our Staff Reporter

HYDERABAD, JAN. 18. The opposition parties comprising the Congress, Communist Party of India (Marxist), Communist Party of India and the Telangana Rashtra Samithi on Sunday feared that the people of the State would be burdened by another Rs. 1,500 crores in the form of increased power tariff under the World Bank's pressure with which the State was likely to sign an agreement in a few months.

The speakers at a seminar on `Reforms in power sector and dangers', organised by the State CPI(M) stated that the only way to avert the burden was to either force the Government to withdraw privatisation of power distribution companies or ensure the defeat of the Telugu Desam Party in the Assembly elections. Among the steps they suggested to prevent a crisis in the agriculture sector arising out of proposed charges for 22-lakh pump sets throughout the State, was to ensure that the Power Project Agreements (PPAs) did not yield unjustified high profits to private firms.

The speakers wanted the Government to restore the prime position to APGenco by paying dues and making investments, continuing subsidies and providing free power to the poor and the small farmers. Those who spoke were -- K. Rosaiah (Congress), B. V. Raghavulu (CPI-M), S. Sudhakar Reddy (CPI), N. Narasimha Reddy (TRS), K. Govardhan (CPI-ML New Democracy) and Sudhir (Socialist Unity Centre of India). Mr. Raghavulu chaired the seminar, which was organised to secure public opinion on reforms. The party had already conducted nine such seminars on Government policies, which, it claimed, were dictated by the World Bank and other financial agencies. Mr. Rosaiah accused the Government of pursuing power policies lacking clarity. Reforms, he felt, should benefit people and improve the set-up rather than putting them to hardship.

He alleged that the Government was "misleading" people in this election year stating that there would not be any power tariff hike. If the TDP was voted back people could not escape a tariff increase, he said. Both Mr. Raghavulu and Mr. Sudhakar Reddy contended that the Government had entered into PPAs with "ulterior" motives, although the State had to pay a higher cost for power generation/distribution.

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Andhra Pradesh