Gujarat govt may cancel power rate hike

With the Lok Sabha elections round the corner and farmers intensifying their agitation against the hike in power tariff, the BJP government in Gujarat may roll back the hike for the agricultural sector.

Though the state government officials and ministers here on Tuesday said no such decision was taken in today's meeting of the group of ministers (GoM) formed to resolve the issue, there were indications of a possible rollback.

"With the elections nearing and the BJP trying to bag as many seats as possible from Gujarat, a rollback of the power tariff hike is most likely. The entire farming community in Gujarat has been protesting against the recent tariff hike. The agitation gained further momentum after senior RSS functionary Lalji Patel went on a hunger strike supporting the farmers," a state government source said.

State agriculture minister and member of the GoM, Bhupendrasinh Chudasma, said a final decision in this regard will be taken only after further meetings by the group of ministers.

Senior RSS functionary and founder of Khedut Mandal Lalji Patel, continued his fast on Tuesday.

Farmers' organisations said they have discontinued their protest as the government has assured them that the demand for a complete rollback of electricity tariff hike will be looked into.

Asked if the government will consider a complete rollback of electricity tariff hike for the farming sector, Chudasma said, "That is a point which will be discussed in the subsequent meetings. I am at present not in a position to state whether there will be a rollback or not."

The minister said the government will consider the impact of a tariff rollback on the Gujarat Electricity Board (GEB) revenues before taking a decision.

Bharatiya Kisan Sangh state convener Prafful Senjaliya said the farmers' organisations were still awaiting a communication from the state government on the decisions taken late on Saturday and on Sunday.

"The government will convey to us the decisions that it will reconnect the snapped electricity connections to farmers and switch on transformers providing electricity to farmers. Until then, the agitation stands suspended," he said.

Chudasama said his department will write letters, conveying the outcome of meetings that have taken place over the past three days to various farmers' organisations.

Chudasma said there has not been any decision on a complete rollback as yet.

In July 2003, power rates for the farming sector were raised from Rs 350 to Rs 1,050 per horse power (HP) per year for farmers using pumps below 7.50 HP pump capacity.

Power rates have also been increased from Rs 500 to Rs 1,200 per HP per year for those using pumps with an HP of over 7.50. However, following protests all over the state, concessions were announced in mid-October. After this, farmers were to pay Rs 750 per year per horse power instead of Rs 1,050.

This, however, is still more than double the electricity tariff that existed before the hike.

For farmers using pumps of over 7.50 HP capacity, the tariff has been lowered from Rs 1,200 per HP per year to Rs 900.

Earlier this month, the government stepped up pressure on farmers to pay bills and disconnecting over 100 connections of defaulting farmers.

The government also began switching off transformers that supplied electricity to farmers.

This led to protests and senior BJP functionaries from Delhi had to rush to Ahmedabad to find a solution to the problem.