Bhopal: State needs Rs 30,000 crore for electricity, may face difficulties in getting funds because of poor fiscal health

NITENDRA SHARMAUpdated: Saturday, June 05, 2021, 01:17 AM IST
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BHOPAL: The cash-strapped state government is in a tizzy over getting funds for supplying electricity. This year, the government has to pay Rs 30,000 crore to the MP Power Management Company that functions under the energy department. In its Budget, the government has made a provision for Rs 15,000 crore, but it has no funds to pay the amount.

As the government does not have funds to shell out for giving subsidy on electricity, the Power Management Company is unable to pay to the firms that supply power. For this reason, supplying electricity is going to be a major problem for the government in the coming days.

The government is supposed to pay Rs 6,500 crore to the Power Generating Company. Besides, it has to give a lot of money to the National Thermal Power Corporation and other power-generating firms.

Chief Minister Shivraj Singh Chouhan held discussions with officials about subsidy on electricity bills. At the meeting, it came to light that the government has to pay a huge sum to the power companies. Because of the poor fiscal health of the state, the government had clearly told the officials of the energy department that they should find out ways to pay the money to the power firms by taking loans.

The Power Management Company was told that it would get a loan of Rs 2,000 crore under the Centreís Ujjawal Discom Assurance Yojna. It will help the state to manage the power supply for now. Apart from that, the energy department was told to increase its income through some other sources and through recovery of dues to improve its fiscal health. The finance department gives a sum of Rs 1,000 crore to the energy department for subsidy on power every month. The energy department, however, demanded Rs 1,500 crore from the government.

According to reports, Chouhan is soon going to hold a meeting with the officials of the energy department. At the meeting, the issue of giving funds to the power companies will be discussed. The officials of the energy department say that, if the funds for subsidy are not given to them, it will be very difficult to manage the power supply in the coming days.

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