The Hindu : Andhra Pradesh News : States oppose free power to farm sector

Online edition of India's National Newspaper
Thursday, Nov 11, 2004

Andhra Pradesh

Andhra Pradesh

States oppose free power to farm sector

By Our Special Correspondent

HYDERABAD, NOV. 10. The Chairmen of the Electricity Boards of Tamil Nadu and Maharashtra and top officials heading the power sector in Karnataka, West Bengal and Jharkhand opposed the free supply of electricity to the farm sector at a national workshop organised by the Tata Electrical Research Institute here today.

No national consensus

The Secretary, Union Ministry of Power, R. V. Shahi, who chaired the meeting, however, ruled out a national consensus or policy on free power. He contended that the States could take their own decisions in this regard but without jeopardising the supply system in the neighbouring States/regions.

S. L. Rao and J. L. Bajaj, former Chairmen of the Central Electricity Regulatory Commission and the Uttar Pradesh Electricity Regulatory Commission respectively, took a middle course suggesting to limit the free supply to small/marginal farmers. If this was not possible, a graded tariff might be collected from all farmers after allowing about 2,000 units per year free, they said.

Concessional tariff

T. L. Shankar, Chairman of the erstwhile Andhra Pradesh State Electricity Board, insisted on discontinuing the benefit to rich farmers, and wanted the Union Government to end concessional tariff allowed to ferro alloy units. Mr. Shahi, however, denied allowing concession to these units.

The Andhra Pradesh Chief Minister, Y. S. Rajasekhara Reddy, who is implementing the free power covering nearly 24 lakh pump sets in the State, sat for two hours at the meeting along with the energy officials and reiterated his commitment to the benefit "till farming became viable".

Reservations were expressed against the proposal for introduction of free power in Maharashtra by the Chairman of that State's Electricity Board, J. Kawale, and Mr. Shahi. Mr. Kawale said if free supply were to be made available to farmers, the system would require an additional capacity of 750 MW and immediate spending on strengthening of the transmission & distribution network. He wanted the free benefit to be allowed only to the small farmers after classification of the farmers based on income. Otherwise, a graded tariff should be collected on pump sets after allowing 2,200 units free per year.

Revenue gaps

S. K. Gupta, member, West Bengal State Electricity Board, highlighted the revenue gaps his State would have to face in the event of opting free power supply. The Tamil Nadu SEB Chairman, K. Skandan, and the Special Secretary (Reforms), Karnataka, M.N. Vijay Kumar, spoke of the difficulties faced by their States after allowing subsidies.

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