Bhopal: State to cut power firms’ subsidy, darkness ahead

BHOPAL: Good rainfall may have improved power supply, but the prospect of power shortage is looming large over the state.

The state government, following financial crunch, is going to curtail subsidy given to power companies. The subsidy curtailment may worsen the condition of these companies.

Over Rs 18,000 crore is provided in subsidy to the power companies in MP. State is forced to curtail its budget following it getting less funds from the Centre and non-achievement of tax collection target of state. According to sources the power companies may get only Rs 13,000 crore as subsidy.

They will face problem in purchasing power which in turn will affect power supply.

The Energy department, looking at the possibility of subsidy curtailment by finance department, has directed that recoveries be made from power distribution companies, strictly. The sources that recovery may help in adjusting up to Rs 1000 crore but shortage of Rs 4000 crore may pose problem.

The recession in the capacity to take loan is the reason behind bad health of power distribution companies. These companies, during the regime of BJP government and after Congress coming to power, have taken excessive loans and they could not take more loans.

Power distribution companies borrow power from power generating companies and other sources. They would not get power if they fail to pay bills which would finally affect the power supply.

Met CM about subsidy: Priyavrat Singh

Energy minister Priyavrat Singh said the he met Chief Minister Kamal Nath over the issue of subsidy. Singh said he has been assured by the Chief Minister that full subsidy would be given. Singh said that he is working to ensure that finance department does not curtail subsidy. He admitted that subsidy curtailment would lead to problem. Singh said he is also trying to get state government’s guarantee so that power distribution companies could raise loans.

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