Lucknow: Even as the Uttar Pradesh Power Corporation Limited (UPPCL) has decided not to hike the power tariff in the curing fiscal, a piquant situation has arisen with State Power Regularity Commission taking strong exception to the subsidised power to be given to the weavers community in the State.

UPPCL has decided not to hike the power tariff for the consumers for the current financial year despite it would incur a loss to the tune of Rs. 4281 crores.

The Commission had objected to the announcement of sops to the weavers by fixing power charges on the looms without taking permission from them. While the UPPCL claimed that there was no need of any permission as the government had issued a Government Order (GO) under section 103 of the Electricity Act 2003.

Talking to mediapersons on Thursday, UPPCL A.K. Khurana said that the State Government has all the right to issue GO and a copy of which had been sent to the Commission.

"There is no change in the tariff rate for the weavers as for the past two years, they were being given subsidy," he said adding last year a discount of Rs. 5000 was given on the annual bill of the weavers.

He said present subsidy was merely an extension of the policy started in 2004.

Earlier U.P. Electricity Regularity Commission Chairman Vijoy Kumar had directed all the power distribution companies not to implement the government order as it had no "legal sanctity".

"Commission has no objection in giving subsidy to anyone, but this has to be done in a legal way by taking permission from us," he added

The commission maintained that under section 62 of the Electricity Act 2003 only appropriate commission shall determine the tariff in accordance with the Act.

Earlier, the Mulayam Singh Yadav Govenrment had announced a concessional fixed charge on looms as per the capacity.

Meanwhile as per the Annual Revenue requirement (ARR) filed by the UPPCL to the Commission for 2006-07, it had proposed no hike in the existing power tariff whereas its deficit would be around Rs. 4281 crores.

UPPCL said that it would meet the deficit by improved services including reduction in line losses and power theft. Besides the deficit would be covered by Rs. 1000 crores subsidy from the State Government and Rs. 2500 crores to be taken as loan from different financial institutions. -- UNI

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