GEB on the path to profit, says minister

Stating that the Gujarat Electricity Board (GEB) will soon come out of losses that have been accumulating over the past six to seven years, minister of state for energy and petroleum assured that the state will make huge progress in the fields of power, energy and petroleum in the coming years.

Talking to reporters just ahead of the completion of one year by the Narendra Modi government, Dalal said over the past one year, the state has made considerable progress in the fields of energy and petroleum.

"We have already embarked on the process of bring the loss-making GEB on track and the state has been making good progress in the energy and petroleum sectors too," Dalal said.

The minister said the state government, in the past one year, has solved the pending issue of royalty from the central government for sharing of revenue.

"After a series of deliberations, which were headed by the chief minister, we have successfully managed to change the royalty rate and Gujarat will get an additional Rs 450 as royalty on crude oil and gas," Dalal said.

Commenting on GEB revenues from July to November this year as compared to the revenue in the same period last year, the minister said there has been an increase of Rs 390 crore in the revenue in these five months.

The total revenue from July 2002 to November 2002 was Rs 3,542 crore, while the revenue from July 2003 to November 2003 has been Rs 3,932 crore. "In the first 18 days of this month, GEB revenues have crossed Rs 662 crore and the revenues per month have been steadily increasing," the minister said.

Dalal was confident that almost all projects in the energy, petroleum, oil and gas sectors, for which MoUs were signed during the Vibrant Gujarat-Global Investors' Summit, will begin within one year of the MoUs being signed.

"A couple of the projects have already begun and a few more are ready to begin," he said. Dalal said within one year of the MoUs being signed, all the projects will get underway.

The oil and gas, energy and petroleum sectors attracted a major share of the promised investment.

During the three-day summit from September 28 to 30, MoUs for projects worth Rs 66,000 crore were signed, of which Rs 27,000 worth of MoUs were in the oil and gas, petroleum and energy sectors.

He said the GEB has chalked out a detailed action plan for upgradation and expansion of the 25 electricity generating units in the state.

"The expansion of four or five plants will begin in the next three months it self, and subsequently, other power plants also will be taken up for capacity expansion," the minister said.

At present, the average plant load factor of GEB power generation plants stands at 69 per cent.

Commenting on the issue of the farmers' stir against electricity tariff hike, the minister said, "As far as the government is concerned, that issue is over."

On the proposed electricity hike that GEB has proposed to the Gujarat Electricity Regulatory Commission (GERC), the minister said "We have given the GERC the actual facts and figures. Effecting an electricity tariff hike or not is the decision of the GERC."

He also outlined the steps taken by the state government to re-negotiate power purchase agreements with the five independent power producers operating in the state, which will save the GEB Rs 490 crore.