Bhopal (Madhya Pradesh): Urban Local Bodies (ULBs) are spending 30% to 40% of their total income on electricity bills under various heads, including operation and maintenance of water supply, cleanliness, street lighting and other services.
With rising electricity consumption, their power bills are increasing steadily, consuming a significant portion of their revenue and leaving limited funds for development works.
There are 184 ULBs in the state. Annual hikes in electricity tariffs are further adding to their financial burden. The rising expenditure is also hindering their efforts to become self-reliant.
Urban Administration and Development Commissioner Sanket Bhondve has directed all ULBs to reduce electricity expenditure. In this regard, he informed them that the state government has decided to establish the Madhya Pradesh Urban Captive Solar Plant with a capacity of 220MW by combining the proposed and sanctioned load of high-pressure connections under existing and proposed schemes. The project will be implemented by the Madhya Pradesh Urban Development Company.
The estimated cost of the project is Rs1,320 crore. The joint equity share of participating ULBs will be Rs119 crore, which will be provided through grants.
The project also proposes raising the remaining ULB share through group municipal bonds. A special purpose vehicle will be created for the partnership of urban bodies, with the Madhya Pradesh Electricity Regulatory Commission determining their share.
The project envisages a tripartite agreement between urban bodies, the Madhya Pradesh Urban Development Company (MPUDC) and the state government. MPUDC will plan and implement a group captive solar energy project for multiple ULBs.
Rising power dues
The increasing electricity expenditure of ULBs is evident from the fact that in April, pending electricity bills amounting to Rs103.06 crore were paid to Central Discom, East Region Electricity Distribution Company and West Region Electricity Distribution Company.
Solar project blueprint
State plans 220MW Urban Captive Solar Plant
Project to be implemented by Madhya Pradesh Urban Development Company
Estimated cost pegged at Rs1,320 crore
ULB equity share fixed at Rs119 crore, to be funded through grants
Balance amount to be raised via group municipal bonds
Special purpose vehicle to be formed for execution
Tripartite agreement between ULBs, MPUDC and state government
