Hike in railway fare and freight Power tariff hike almost certain
Saturday, 21/06/2014
http://www.tribuneindia.com/2014/20140621/punjab.htm#4
The hike in rail freight will hit Punjab State Power Corporation Limited and consequently the consumers too. The annual additional fiscal burden on the PSPCL because of the 6.5 per cent rail freight hike will be about Rs 225 crore. The power generation cost will go up as all thermal plants in the state use coal as fuel to operate the units. “We transport 13 million tones of coal from various mines to our thermal plants in the state every year,” said KD Chaudhary, corporation MD.
As of now, the PSPCL pays Rs 2,300 per tone as freight on the transportation of coal. Meanwhile, the Punjab State Electricity Regulatory Commission is waiting for the state government’s response regarding the power tariff hike for the current fiscal. The PSPCL had filed a petition, seeking a tariff hike to mop up an additional Rs 2,600 crore per annum to meet revenue requirements.
The commission, which has completed all formalities such as public hearings, has written to the state’s power department but is yet to get a response. If the state government continues to give free power to the agriculture sector and the poor sections, it will have to undertake in writing to the commission that it would fully compensate the PSPCL for providing free power to the targeted sections. The subsidy bill of the state government is likely to touch Rs 6,000 crore for the current fiscal year.
Sources said the commission did not appear in the mood to order a hike in the tariff. However, owing to the hike in the rail freight, it may have to do so. Besides, the commission may order the hike to neutralise inflation.
Shock wave for power firms
The Railways has hiked the freight rate by 6.5 per cent.
The annual additional fiscal burden on the PSPCL due to this will be about Rs 225 crore.
Punjab plants consume 13 million tones of coal from various mines in a year.
The PSPCL pays Rs 2,300 per tone as freight on the transportation of coal.
Cong leaders hit out : Capt Amarinder
‘Are these achhe din?’
The arbitrary hike will badly hit the common man. Are these the good days (achhe din) ahead for the country promised by the BJP leaders at the top of their voice during their campaign?
‘Govt’s hidden agenda’: Partap Singh Bajwa,
This is Modi government’s hidden agenda. Union Minister Harsimrat Kaur, who represents the Akali Dal at the centre, should tell whether she opposed this hike or not.
