Energy Minister KJ George says the ‘Gruha Jyoti’ scheme, under which the new Congress government is offering free electricity up to 200 units, will benefit around 90 per cent of domestic users. In a conversation with the editorial team of TNSE, the senior Congress leader said the party’s five guarantees will not only empower the beneficiaries, but also contribute to the growth of the economy, as they increase their spending capacity.
What are the challenges expected with the implementation of the Gruha Jyoti scheme?
There are no challenges. The rising prices of commodities is an issue affecting people of all economic backgrounds now. However, the lower- and middle-income groups have been the most affected as their salaries have not increased in commensuration with inflation. The youth in India need to be uplifted and we plan to do it with the five guarantee schemes. These schemes will ensure more circulation of money in the market which will in return create more employment opportunities.
During elections, Congress promised 200 units of free electricity. Why after coming to power it has been made “up to 200 units”?
We always said we will pay for what most people are consuming. From the data cumulated, we observed that 53 units is the average consumption across all households in Karnataka. Almost 90 percent of the 2.16 crore domestic population consumes an average of 53 units and they are the ones who will benefit from the scheme. Remaining 20 lakh people are from financially affluent backgrounds, are already stable and do not need hand holding. That was the reason it was stated that up to 200 units, all consumers will be given free power.
Any challenges with regards to the scheme? Why are there too many conditions now?
So far, we have not foreseen any challenges, but it is at a nascent stage. We expect to suffer losses of around Rs 13,000-14,000 crore and the state will bear the burden. We have not put many conditions as we want all to benefit. Only a consumer’s RR number and Aadhaar card number is required for registration. Citizens are also asked to give their voter ID or passport as proof to show where they stay. Besides, provisions are being made for new house owners and tenants which will be announced soon.
What is your opinion on privatisation of electricity supply companies (escoms)?
Already, escoms function as corporate entities rather than as a government department. We need to see that it has a more corporate approach. We cannot privatise everything. There should be some control in the public sector.
The guarantee schemes speak of empowering poorer sections by hand holding them. However, the fixed charge has almost doubled for others. This means others will be forced to pay more for these schemes. Does this not contribute to the rich becoming poor?
It is not really forcing anyone. I am an income taxpayer and if the price goes up, it affects me as my expenditure goes up. The scheme has been calculated based on the average energy consumption of a large section of consumers. Helping them means that they are able to save some money. They are the actual people who struggle, because of several factors, including demonetisation and the Covid pandemic. Their role in development is major. They are not asking for charity. We are responsible for ensuring their economic welfare. The people these guarantees benefit have self-respect. They are not going to sit idle after receiving these benefits. Even if it’s a small benefit, it goes a long way in helping them.
The power infrastructure in Karnataka isn’t very good, as seen by the number of power cuts. Any plans to improve this?
There is already a plan to improve power infrastructure. However, I am a new minister. I will have to review the situation in the state, including visiting and inspecting different areas. After six months, it will be possible to get a firm idea as to how to fix the situation.
Have you consulted economists before launching the five free guarantees? Or is it just an election strategy?
Congress decided this strategy for the first time.
Guarantee schemes are to empower, but why so many conditions?
We don’t have a lot of conditions. The only condition is the average power consumption should be below 200 units and an average of for 12 months will be seen.
Are you going to use free power as a game changer in other states?
This is the second state where freebies have been offered. Also, it is not the first time. We earlier launched Anna Bhagya. We have to wait, see and manage the schemes. Every state has different problems.
Will this distract you from other energy goals?
We are going to promote renewable sources in the state. Karnataka is the only state using such large quantities of renewable energy. We have moved towards 60% of non-conventional and 40% conventional energy sources for power. Given global warming, we want to promote more renewable energy and people are coming to invest. We will make use of the opportunities. There will be no red-tape during the implementation of projects. However, we also need some conventional sources of energy. I have now learnt that electricity can be stored and we are doing this in our reservoirs. It is one of the best ideas.
How will you address the issue of scarcity of transformers faced by farmers?
As of now, I am told there is no scarcity of transformers and there is enough stock. However, I have instructed officials that more efforts need to be made to reach out to people.
Are there any scams from the previous government that you will be investigating in your department?
Whether something comes up, either from the previous government or this government, we will investigate it. We have to depend on the people working there. But whenever a scam surfaces, we will investigate it.
Bengaluru has the first ever underground transformer in Asia. Is there a roadmap to lay underground cables and transformers in the state?
It has already begun. They are already laying underground cables. The only problem now is that while laying cables, workers come across other utilities like underground drains.
Isn’t this an issue because no two agencies work together in the state?
It is very difficult. I faced the same problem during my tenure as urban development minister. Our allotment for Bengaluru was constantly cut and there were other issues. This will happen.
Congress pushed for liberalisation, made the government step back from business, removed license raj, and aimed at development through growth. Overall matrix, economic structure has been this. Now, freebie culture is called welfare and empowerment politics. Is it that Congress is going back to the 70s -- Indira Gandhi’s 20-point guarantee, abandoning liberalisation? If so, why?
People think that only those who pay taxes are contributing to the country. But common people who buy anything are real taxpayers. We only appreciate 10% of the people. We have to take everyone together. The government has to think for everyone. Under the Ujjwala scheme, the government made a person use free gas. We have to empower people. Money is coming from them. Nobody is sitting in their house lazing around. Everyone wants to work. I went to Algeria and people there don’t want to work. But here we need to empower them.
There are concerns that the government may start increasing milk prices and bus fares. Will there be a price increase in fuel resources too?
There has been a central government order regarding fuel, where they have asked us to blend imported coal with local coal. When such orders are passed, ultimately the consumer has to pay for it. BJP was protesting saying Congress raised fuel prices, but these price hikes occurred during their government. BJP never bothered to implement it, and so, during our tenure we have to implement this. People will use free electricity and the state government will bear that burden. All we have asked is that past arrears are paid. It is not that we want to penalise people.
You were the urban development minister in 1990. What difference do you see in our cities, particularly Bengaluru?
Then, Benglauru’s population was 20 lakh and the city was known as a pensioners’ paradise. We also had financial limitations as the size of the state budget was Rs 3,000 crore. Now, Bengaluru has become an international city with a population of around 1.5 crore. The city has crossed the boundaries marked by its founder Nadaprabhu Kempegowda. Unfortunately, it is not a planned city and we are paying a price for that. The traffic problem is one of them. Now, we are putting in a lot of effort and Namma Metro is making a lot of progress. Though the project started in 2006, the operational network by 2013 was just 6 km. We boosted the pace of the project and now we are in a better situation though connecting the Metro is a continuous process as the city grows. But we have to address the first and last-mile connectivity to encourage people to take public transport. We will work towards that. Now, we have a dynamic Bengaluru development minister in Deputy CM DK Shivakumar and can hope that development will be put on fast track.