West Bengal electricity tariff under review

Mrinal Banerjee, power minister West Bengal state government recently said that the government was considering various means and ways of reducing the burden of increased electricity bill that they were slated to face with gradual abolition of subsidy.

"We are considering various options of helping the lower income and middle income families who consume less than 300 units per months. We would come out with a concrete plan once the new tariff structures for various power utilities in the state were announced," he explained at the sidelines of a meeting organised by the Bengal Chamber of Commerce & Industry.

The minister however said that the state was not in favour of providing direct subsidy to consumers by cutting budgetary allocation from other sectors like health and education. Subsidy would be the last resort he explained.

Meanwhile, talking on renewable energy, Banerjee said, the state has drawn up plans to setting up small and mini renewable energy plants totaling 400MW through joint collaboration of the state and private parties.

The minister reiterated that the state had sought extension for implementation of the Electricity Act 2003 which last date for which expires on June 10.

The government was also exploring the possibility of setting up rice-husk based power plants in Bardhaman, Hoogly, Birbhum and Bankura. The potential was around 150 MW and the government has already received expression of interest for 60 MW in the region.

Earlier Banerjee had said that the state had received as many as 26 expression of interest for the 100MW of green power plants and that the state envisages setting up in collaboration with the private sector.

If all these materialises, there would be around Rs 300 crore of investment from the private sector into the segment by 2006-07.

"We have requested all government departments, non-government organisations, and research & development facilities to gear up their activities so that rural Indian can use more of green power "" which will achieve the dual target of achieving rural electrification as well as reducing pollution in terms of lower emission of carbon compounds," he added.

Under the scheme the state government has helped set up a 3.6 MW tidal power plant in the Sunderbans. It has also set up a solar power plant at the New Township area in Rajarhat.

"The government is slated to spend around Rs 232 crore by 2006-07 the rest is likely to be chipped in by the private sector," informed Banerjee.