Gandhinagar: Responding to the rumours of a price hike in electricity charges, Saurabh Patel, state energy development minister, said that due to a rise in the prices of gas, coal and transportation, the private power companies that have partnered with the government, will have to bear an additional cost of Rs1,146 crore in the current financial year.
However, the government has decided to give them subsidy as compensation, so the prices are unlikely to hike. He also asserted that the state is not facing any power cuts at present, and will not face it in the future either. He informed that a total of 3,200 MW power generation capacities will be added in the current year.
"In the last financial year, government had granted a subsidy of Rs2,100 crore (Rs1,00 crore for agriculture and Rs300 crore for other purpose) to the private power companies. However, this year the government will give an additional subsidy of Rs1146 crore, which will take the total figure to Rs3,246 crore," said a source.
The source also said that at present the state government is buying power worth Rs8,500 crore from the private companies at a cost higher than what the government-owned companies offer for.
A source in the state government said that the government is not entering into a partnership with any new power companies, but will continue to make purchases from around 12 companies with whom it had inked a contract in the past.
