CHENNAI: The State government was forced to hike electricity charges as the previous AIADMK regime failed to introduce reforms in the power sector during its ten-year term, said Electricity Minister V Senthil Balaji on Friday.
The minister, speaking to reporters after inspecting the Benny mill substation in Chennai, said that the power utility’s total debt stood at Rs 1,53,823 crore and that it was paying an interest of Rs 16,000 crore.
He blamed the previous government for not increasing the number of power generation plants and added that the DMK government, on the other hand, plans to add a capacity of 6,220 MW to the grid in the next five years.
Senthil Balaji also questioned the AIADMK's right to criticise the government on the tariff hike as the previous government had raised the charges by 37 per cent in a year.
The huge debt affected TANGEDCO in obtaining bank loans, he said, adding that the utility was left with no other option but to revise the tariff after a gap of eight years as the Centre and regulatory commission had together sent it 28 letters to increase tariffs. The minister said the tariff hike, however, won't affect about one crore consumers (42.19 per cent).
Responding to BJP State president Annamalai's comments on the hike, Senthil Balaji said: "Annamalai must know the electricity charges in BJP-ruled states, including Gujarat and Karnataka. Then, I will answer his question."
The minister said the government would soon increase the electricity subsidy from Rs 9,000 crore to Rs 12,500 crore and promised to implement the system of monthly electricity charges.
Debt affecting loan availability: Minister
The huge debt affected TANGEDCO in obtaining bank loans, he said, adding that the utility was left with no other option but to revise the tariff after a gap of eight years as the Centre and regulatory commission had together sent it 28 letters to increase tariff