Gujarat Power minister criticizes Railways over freight increase

Gujarat Minister of State for Energy Shri Saurabh Patel today sternly criticized the Railway Ministry over its announcement of raising rail freight by 4% from December 27, 2010. He said that increase in rail freight will directly impact the power sector in Gujarat and will lay an extra burden on all types of electricity consumers in the state as the fuel surcharge will see an increase with the increased cost of power production.

Stating that the central government has proved to be an utter failure in controlling price-rise, he said that the decision of increasing rail freight will impact adversely on the economy of Gujarat as the state depends largely on coal-based power production.

He said that Gujarat’s coal-based power plants get the supply of coal from Chhattisgadh and is being transported here in railway wagons. The rise in rail freight will increase the cost of power production and likely to impose a burden of around Rs.100-crore on coal-based power stations of Gujarat, he said.

Gujarat is not being given a coal supply linkage with the nearby coal mines, despite the Chief Minister Shri Narendra Modi and other ministers and MPs have asked the UPA government for it many times. However, Gujarat government, with qualitative changes in power sector, makes sure the people of Gujarat do not have to bear any unnecessary economical burden, Shri Patel said.

Minister of State further said that Railway Minister, while declaring the budget makes illusionary announcements, deluding people as if no rates are being increased. But then, introduces such increases from the exit-route. UPA government has given nothing to people except for price-rise, he said.