Farmers get power tariff relief

In a major decision that would have far-reaching implications on the state's power sector, the Narendra Modi government on Wednesday decided to partially roll back the hike in power tariff imposed on the farm sector 3 months ago.

The decision was taken after talks with farmers' organisations, BJP legislators and members of parliament.

The charge for use of 7.5 horsepower machines a year would now be Rs 750. It had been hiked to Rs 1,050 from Rs 350.

For machines with more than 7.5 horse power, the charge would be Rs 900. The charge had been hiked to Rs 1,250 from Rs 500, earlier.

A four-member ministerial committee headed by agriculture minister Bhupendrasinh Chudasama reviewed the power tariff for the farm sector.

The committee, also comprising minister for state for energy Saurabh Patel, minister of state for home Amit Shah and revenue minister Kaushik Patel, submitted its report to Modi on Wednesday evening.

Chudasama and Saurabh Patel in a joint statement said the rollback will reduce the burden on the six lakh farmers in the state by Rs 200 crore.

The government has paid Rs 1,760 crore as farm power subsidy to the Gujarat Electricity Board last year and the subsidy for this year would be Rs 1,550 crore after the reduction in power tariff hike, they said.

"The Gujarat Electricity Regularity Commission had proposed Rs 1,750 per horsepower a year. We have brought it down to a reasonable level," Chudasama said.

Leader of the Opposition in the state legislative assembly Amarsinh Chaudhary said, "The rollback of the power tariff is a political stunt to check the agitation by the farmers.