Gujarat govt paid Rs 7550-crore subsidy to power companies in last 3 years

Gandhinagar, 1 November, 2011

Regarding the news stories alleging the state government for hiking the agricultural power rates by 300%, Minister of State for Energy Saurabh Patel said that the news had absolutely no truth in it and had been spread with ill political motives.

“In fact the state government is providing power to the farmers at the rates fifty percent lower than the rates announced by Gujarat Electricity Regulatory Commission”, he said.

Giving details about this Mr. Patel said the expenses of power generation has increased by Rs.4286-crore since the UPA government in Centre has kept on increasing the rates of coal, gas and rail freight during past five years. But the Gujarat government has not burdened the farmers of the state with this increase.

As per Electricity Regulatory Commission’s policy increase in cost of power generation has to be recovered from the buyers. But the state government has kept the good of the farmers in its heart and did not trouble them with such increase. The state government has paid Rs.7550-crore to the power companies as subsidy in last three years to provide electricity to the farmers at lower rates, he said.

Gujarat Electricity Regulatory Commission has fixed a rate of Rs.1920/HP. But the state government is giving power to the farmers at the rate of Rs.665/HP for the consumption of up to 7.5 horsepower and at the rate of Rs.807.50/HP for the consumption higher than that. Gujarat government has always adhered to the pro-farmers policies which has led the state to achieve a double-digit agricultural growth rate.

Minister of State said the new stories were intended to lead the farmers astray. He appealed the farmers to not to be mislead by such news which were in fact spread by the leaders wanting to achieve their political ambitions.

It should be mentioned that former Gujarat chief minister and senior Congress leader Shankersinh Vaghela yesterday criticized Narendra Modi-led BJP government over revised power tariff for farmers. “It (power tariff) will ruin farmers who faced many challenges on various fronts due to hike in the prices of pesticides, unpredictable weather, getting insufficient power for farming purpose and others. After the new jantri rates, the steep hike in power tariff, has dealt a severe blow to farmers,” Vaghela said after inaugurating a chilling plant of Baroda Dairy in Savli town in the district. The power tariff for farmers has gone up to Rs 6,000 from minimum Rs 2000 for using motor of 3 horse power (HP) and Rs 10,000 from Rs 3333 depending upon the use of power.