TRIVANDRUM, 10 October — The government in the southern state of Kerala yesterday increased power tariffs, just a month after it was forced to reverse a steep hike in electricity charges in the face of public protests.
"The increase effected is a mild one. The new rates would be effective from Oct. 1," Chief Minister A.K. Antony told reporters after a meeting of the state Cabinet, adding there was no other way out of the deep power crisis.
The opposition parties led by the Communist Party of India-Marxist (CPI-M) immediately said they would stage a strong protest if the hike goes through.
Opposition leader V.S. Achuthanandan said: "We would discuss with all the other parties and decide the nature of protests to be launched across the state."
The youth wing of the CPI-M, the Democratic Youth Federation of India (DYFI), announced plans to blockade all major offices of the Kerala State Electricity Board (KSEB) on Oct. 16 and 17.
The government had announced a steep increase in tariff on Aug. 28, but widespread protests forced it to reverse the decision on Sept. 3.
Antony then called an all-party meet to discuss the situation, during which opposition parties conceded the power sector was in poor shape.
A committee of the ruling United Democratic Front (UDF) this week recommended that the government hike tariffs again, though not as steeply as last time, and overhaul the loss-making KSEB.
The cabinet yesterday approved an increase of 25 paise per unit for consumers using up to 40 units every month as against the earlier hike of 90 paise. It also ordered a 50 paise hike for consumers in the slab of 41-80 units a month, 75 paise hike for the 81-120 units slab and one rupee for all consumers using above 120 units. Industrial consumers would have to pay 50 paise a unit more.
The ministers, however, decided not to increase the rate of power for agricultural use.
The government said it planned to replace about one million faulty electricity meters, reduce transmission losses and prevent electricity theft by passing an ordinance.
Electricity Minister K. Sivadasan said the KSEB has been asked to cut its administrative expenses by 10 percent with immediate effect. "Excess staff is being identified and we have already re-deployed 450 engineers," he said.
Officials said the hike in tariff would raise Rs. 350 million a month and other measures would help save Rs. 200 million.
The KSEB incurs a monthly loss of Rs. 1 billion. The failure of the summer monsoon has depleted the water reserves and hit hydroelectric generation, imposing an added burden of Rs. 840 million on the board to buy thermal power.
The cabinet decided to chart out programs to generate 1,944 million units of power in the next fours years from hydroelectric projects that are stalled and expedite sanction of mini projects in the private sector.
