Date:14/12/2006 URL: http://www.thehindubusinessline.com/2006/12/14/stories/2006121401042100.htm

Back Minister refuses doles to make good KSEB loss

Our Bureau

Thiruvananthapuram , Dec 13

The Electricity Minister, Mr A. K. Balan, has ruled out a hike in power tariff just to make good the annual loss of Rs 120 crore accumulated by the Kerala State Electricity Board (KSEB) from the predecessor Government's decision to peg down the rates.

Speaking to newspersons here, the Minister said picked holes in the predecessor government's policy decision, which was not backed by Cabinet approval.

REBUTTAL

The power utility has since been demanding of the Government to part with the amount, which met with rebuttal from the Cabinet on Wednesday. The board would have to find other ways to make good the amount, the Minister said.

The board had submitted the relevant papers before the State Electricity Regulatory Commission, and had estimated a deficit of Rs 450 crore. This was likely to go up because the Board was poised to take up new projects, besides recruiting new hands.

FIRM RESOLVE

The Government was firm in its resolve that the KSEB be retained in the public sector. Under the Electricity Act 2003, transmission and distribution companies would have to be formed.

The State Government had asked for an option to decide its own course, but the Centre had refused permission. "We are trying to bring in a system that would plug all loopholes that might lead to privatisation," he said.

NEW WAYS

The State Government would also have to think about innovative ways to get around the stipulations of the Electricity Act by entrusting the distribution to beneficiary committees, panchayats or cooperative bodies.

The Government had made a move in this direction with regard to projects under the rural electrification schemes.

The Minister also announced the energy conservation awards for 2006. Apollo Tyres, Perambra, bagged the award in the large enterprise category, while Coconut Lagoon, Kumarakam, was the winner in the medium scale enterprises category.

Milma, Kasaragod dairy, won the award in the small enterprises category.