MP hikes power subsidies

The Madhya Pradesh government has decided to offer Rs 300-crore power subsidy to various categories of consumers, particularly those belonging to weaker sections of society.

"The consumers who consume up to 30 units a month will get power at Rs 1.75 per unit. This decision has been taken by the state government along the lines of the national power policy of the Centre," Commerce and Industry Minister Kailash Chawla said here today.

A tariff of Rs 1.20 per unit has also been proposed for farmers against a power supply of up to 300 units per month on meter.

The grant will be similar to the one given to farmers who consume more than 300 units of power per month for meter and non-meter connections. The state government today decided to grant a subsidy to local self-governing bodies against power consumption for street lights.

"The grant for subsidy will be given to municipal corporations, nagar panchayats, and gram panchayats," he said.

The government has also maintained a tariff of Rs 2 per unit to the powerloom sector and the available subsidy will stay. "The average relief will be 55 paise per unit and 28-30 lakh consumers belong to these categories will benefit," said the minister.

The state's power shortage is lessening, with the Narmada Hydroelectric Power Development Corporation, a subsidiary of the National Hydroelectric Power Corporation (NHPC), now reportedly generating 800 MW through the 1,000 MW Indira Sagar Power project in Khandwa.

The Jabalpur High Court has ordered the utility to maintain the reservoir level of the Indira Sagar project.