Free power plan likely to cost Rs 600 cr/month

Hyderabad: There appears to be some reservations and apprehensions among the officials regarding the implementation of 200 units of free power scheme made by the Congress government.

Official sources said that this scheme would put a financial burden of about Rs 600 crore on the state exchequer every month. According to official records, there are nearly one crore domestic consumers who consume below 200 units of power every month.

Hence, sources said, the government which was facing a financial crunch was also examining the possibility of going in power expansion of solar power which can be used for free power supply. The installation of solar panels and their maintenance would cost 50 per cent less than the conventional 100 per cent subsidized power supply.

The government can earmark some funds in the new budget proposals for the free power scheme and also come out with a plan to install solar power units as an alternative after taking a policy decision.

But the problem that may arise is regarding maintenance of these units as the beneficiaries will not be able to maintain them.

If the government depends on conventional power, then it would put an additional financial burden on DISCOMS which are already in red.

At present, the power utilities get highest revenues from the power consumers who consume between 150 to 200 units during winter and monsoon season. Nearly 70 per cent of them were white ration card holders. Supply of free power to this segment would deprive the power utilities of this income.

The officials said the government has estimated that Rs 10,000 crore per annum would be required for implementing this scheme. The free power for agriculture was costing another Rs 12,000 crore.

Officials said that since the Cabinet had endorsed this scheme the officials were now holding in-depth consultations with officials at the ground level to come up with an action plan. Chief Minister A Revanth Reddy also had a detailed meeting with the officials recently. Based on the ground reports, the modalities would soon be finalized, sources added.