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Power users to subsidise renewable energy projects

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Our Bureau Kolkata
Last Updated : Jun 14 2013 | 3:47 PM IST
The West Bengal state government is bent on continuing cross-subsidy in the power sector but in a different way "" it will use subsidy from existing power users to build renewable energy projects.
 
The state power department will levy a surcharge of one paisa per unit of power consumed by existing customers.
 
The proceeds of this surcharge, estimated at around Rs 30 crore per year, would be used to subsidise capital investment for renewable energy power plants in rural areas.
 
"The fund would initially be put into an escrow account the modalities of which are being worked out," explained Mrinal Banerjee, state power minister.
 
"The quantum of fund collected from this surcharge will rise in the subsequent years with power consumption in the state slated to rise," he added.
 
New power plants are being set up in the state by companies like West Bengal Power Development Corporation (WBPDCL) and CESC to satisfy rising demand and this would funds for renewable energy.
 
Banerjee said the government would shortly approach the West Bengal Electricity Regulatory Commission (WBERC) for permission to levy the charge.
 
The funds can be raised only if WBERC gives permission.
 
S P Gon Chowdhury, director of the West Bengal Renewable Energy Development Agency (Webreda), said that the idea was to mop up funds for setting up renewable energy power plants in the rural and semi-urban areas.
 
The surcharge would be levied on power consumers in both domestic and industrial segments under both CESC and West Bengal State Electricity Board (WBSEB).
 
All power consumers may not have to cough up the extra amount per month if the government and Webreda so decide.
 
Officials at WBERC said the Electricity Act provides for such subsidy but factors like benefits to one segment of population and cost escalation of a different set of consumers would have to be examined before the proposals can be passed.
 
Sources close to the development said the state government was finding it difficult to finance its electrification target in rural areas of the state as it lacked funds.
 
The new surcharge would bankroll the state's rural electrification plans.

 
 

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