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Transparent subsidy system needed in power sector: Kumaramangalam 

Anoop Saxena  
New Delhi, July 26: There was an urgent need for a transparent subsidy system in the power sector, Union power minister P R Kumaramangalam said on Wednesday.

"There is no transparency in subsidy in the power sector and the deficit has gone up to Rs 37,000 crore", Kumaramangalam informed the Rajya Sabha.

Kumaramangalam, who was replying to supplementaries during question hour, said large consumers owed huge amount of dues and, if this could be realised with the assistance of state governments, the power sector's financial position could be substantially improved.

"Those who can pay are not paying. The rich are the biggest violators in paying their dues," Kumaramangalam said, pointing out that the dues from the rural sector stood at a whopping Rs 2,251.2 crore.

On the success of "Kutir Jyoti" programme under which one light connection is provided in rural homes, Kumaramangalam said the state electricity boards were reluctant to avail the grant of over Rs 214 crore as many houses were installing more than one electricity point in violation of the programme.

CPM member Dipankar Mukherjee, however, said the electricity boards were finding the grant unremunerative as they felt more funds would be required to fully implement the programme.

Kumaramangalam said the government could consider extending the "Kutir Jyoti" programme to people living below the poverty line in urban areas as these funds were not being fully utilised. Minister of state for power Jaywantibehn Mehta said since the launching of the programme in 1988-89 for people living below the poverty line more than 35.56 lakh connections have been provided as on December, 1999.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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