Akhilesh drags feet on UP power tariff hike as polls loom
Until March 2012, UP’s power sector dues was Rs 30,000 crore, including approximately Rs 15,000 crore due to banks and and an equal amount as outstanding power purchase liabilities.
The tariff revision for UP’s domestic consumers was in 2009-10 when the rates were hiked by 20%.
“UPPCL has always been a tool for every political dispensation. But if the present government does not take tough steps despite sending its acceptance letter to the Centre, it will be unfortunate as the package may not materialise and the condition of UPPCL may worsen beyond repair,” said an official, adding tariff hikes are “absolutely necessary.”
The average cost of electricity comes to about Rs 6 per unit, while the average revenue realised is around Rs 4. “While the cost of electricity has gone up many notches, the hike has not been in tandem, driving the corporation into the red. If we do not rationalise tariff for the domestic sector, we are sure to sink,” said another official. “If the state government backs out, the bailout package may fall through, as nobody would be willing to give financial guarantee for populist decisions,” he said.
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