The Hindu : Karnataka / Bangalore News : State says it cannot subsidise pumpsets

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Tuesday, Aug 10, 2010
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Karnataka

Karnataka - Bangalore

State says it cannot subsidise pumpsets

Staff Reporter

Bangalore: The State Government has expressed inability to bear the Rs. 3,922.63-crore subsidy towards irrigation pumpsets.

At a public hearing on Monday by Karnataka Electricity Regulatory Commission (KERC) on the review petition filed by the Government, it was made clear that the Government would not be able to bear the amount and that industries have also refused to pay more cross subsidies.

Though KERC is yet to decide, representatives from the farming community and industries fear the Government stance would mean burden on the electricity consumers in the State.

During the hearing, the government representative urged KERC to treat part of the amount as regulatory asset or frame a mechanism for the Government to pay with more instalments over five to six years.

BESCOM Managing Director Tushar Girinath said that the utility would not oppose the Government's review petition provided its revenue requirement is met. “We don't oppose the Government's appeal to consider the subsidy amount as a regulatory asset,” he said.

Sridhar Prabhu, who represented Federation of Karnataka Chamber of Commerce and Industries (FKCCI), said industries are bearing the burden of subsidies and will not be able to pay more.

The next public hearing will be held on August 26.

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