Chennai, Mar 25: The Tamil Nadu chief minister Jayalalithaa today asserted that the power subsidy to different sections of society had not been completely withdrawn after the tariff revision in the state.
"The state electricity board will have to bear a subsidy burden of Rs 2,626 crore for 2003-04 even after the tariff revision", she told the state assembly, while intervening during the debate on the state budget.


She said that the Tamil Nadu electricity regulatory commission had fixed the purchase price of power at rs 3.07 per unit. It had also fixed the tariff for domestic users at Rs 1.10 for the first 50 units bi-monthly, leaving a subsidy element of Rs 1.97 crore uncovered.

The subsidy element continued up to 600 units, she said, adding that the commission had fixed a tariff of only Rs 250 per horse power for farmers, when the actual charge should be Rs 3,261, leaving Rs 3,011 per hp uncovered.
The government would not discontinue free power scheme to small and marginal farmers, she asserted.

"Wait and watch," she told DMK member R Pughazenthi when he demanded to know how long the subsidy to small and marginal farmers would be continued.

She said that the erstwhile DMK government was to be blamed for the electricity regulatory commission being set up 'under pressure' from the Centre, which was done only to get funds under the accelerated power development scheme. "We had no other option but to seek the power tariff from the SERC', she added.
Bureau Report