Kerala State Chief Minister Hints Hike in Power Tariff

Trivandrum, India, Aug. 3 2002 (INS News) -- The Kerala State Cabinet decided to increase the power tariff in Kerala state. Announcing this after the cabinet meeting, Chief Minister A K Antony told reporters that a decision in this regard would be taken immediately.

Antony pointed out that the monsoon has terribly failed the state this year. Though the Inida Government has been approached for immediate help, considering the overall drought situation prevalent in the country this year. Kerala is one state where the power is given at the cheapest rate and that is possible because of the Hydel projects. However, the dependence on rainwater cannot continue for long and the state has to look for other option that is thermal power, for which we have to pay more, Chief Minister said.

A K Antony said that the state-run Kerala State Electricity Board is incurring a monthly loss of Rs120 crore now and an estimated Rs 85 crore will be required once thermal power is bought. He hinted that the new power tariff hike would be calculated and fixed in such a way that at least the additional expenditure required for thermal power is recovered from subscribers.

Answering to the media persons, the Chief Minister said that Kerala could have avoided this crisis, if we had not ruined the chance to establish a nuclear power project in the state, two years ago. He informed that the government is considering ways to reform the Kerala State Electricity Board and transform it to a profit-making public sector.

Chief Minister, denied that there was any difference within the cabinet over escalation of power tariff.

-- Binu Raveendranath in Trivandrum, India
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