Saurabh Patel, an influential member of the Legislative Assembly (MLA), feels the only way to augment the revenues of the Gujarat Electricity Board (GEB) is to cut down on subsidies being given to the agriculture sector and certain household segments. This appears to be the only course for the GERC given the fact that industries in Gujarat are paying more than their competitors in other parts of the country.

Participating in an interactive session on `Power Tariff in Gujarat' organised by the Gujarat Chamber of Commerce and Industry (GCCI), chamber president Mukesh Patel pointed out that the power tariff for industries and other consumers in Gujarat was the highest in the country. The average tariff in the state in 1998-99 was Rs 3.25 per unit as against Rs 1.98 per unit for the country, Patel said. Thus, compared to the all-India average, power tariff in Gujarat is 64.26 per cent higher. The high cost of generation of power, coupled with the high cost of power purchased by the GEB from the private sector, has made power prohibitively costly in Gujarat.

It has blunted out the competitive edge of trade and industry of the state," GCCI president said.The woes of industries in the state are further compounded by the imposition of electricity duty and tax on the sale of electricity in the state. There is, therefore, an urgent need for rationalisation and reduction of power tariff in Gujarat so that the competitiveness of Gujarat's industry is maintained, Patel said. Gujarat's industries are opposed to any upward revision of tariff.

Vasant Gandhi, the Bhavnagar District Small Industries Association vice-president, who also participated in the round table, said categorically that upward revision of GEB's power tariff could not be justified. "Why is it being considered in the first place?" he asked. Gandhi advocates better and more professional management of GEB and curtailing of its monopolistic status. Despite near monopoly, high tariff and accompanying taxes, GEB has been incurring losses over the years. The cumulative losses run into millions of rupees.

Consumers and experts alike attribute this to an inefficient GEB administration and a faulty distribution system. Subsidising power supply to the farm sector under political pressure is another reason.According to Chinubhai R Shah, former managing director of the Ahmedabad Electricity Company (AEC), interference by bureaucrats and politicians is responsible for many of the ills afflicting GEB and its irrational functioning. "Take for instance imported coal. It is cheaper and has higher calorific value. Yet GEB still depends on low quality expensive coal being mined in eastern India," he says. Shah also advocated cracking down on power theft.

"It should be treated as a criminal offence and no political interference should be allowed when it comes to punishing the culprits," he said. According to DG Karia, the GERC chairman, the regulatory commission would come out with the revised power tariff structure after discussing the issue with the parties concerned and industry players by March-end. Apart from having an advisory role, GERC also has wide-ranging powers not only to determine the tariff but also to make specific stipulations that would have a binding effect on GEB. The commission has already held consumer meetings at Mehsana, Rajkot, Bhavnagar, Vapi, Kutch and Ahmedabad.

-- (IANS)