Reworking power tariffs to boost revenue: Sukhu
Shimla, Sept. 22 -- Himachal Pradesh is reworking the rates at which it sells surplus power to other states and exploring ways to monetise its water resources as part of a broader strategy to make the state financially self-reliant. Chief minister Sukhvinder Singh Sukhu said this while talking to Hindustan Times after inaugurating his new office on Monday.
He said the state had begun negotiating higher power tariffs with consuming states, starting with Kerala and Tamil Nadu, while Rajasthan was also purchasing electricity from Himachal Pradesh. Tamil Nadu has agreed to purchase power at around Rs.13.50 per unit up to March 31, while discussions are underway with Kerala over a rate of Rs.14 to Rs.14.50 per unit during peak hours.
The chief minister said Himachal had increased annual revenue from power sales from about Rs.1,900 crore to more than Rs.2,400 crore after creating a separate energy management mechanism.
The state is looking at supplying power during periods of higher demand and prices, while cheaper daytime power, particularly with rising solar generation, is being assessed separately. "The state is expected to generate Rs.3,100 crore to Rs.3,200 crore through improved power management this year," he said.
Sukhu also referred to the state's entitlement to 12% free power from hydropower projects and said the government had decided to retain greater control over it instead of allowing the electricity board to independently dispose of the power.
The state is simultaneously examining the commercial value of its water resources and working on a mechanism to fix a rate for water supplied from its rivers. It is considering supplying water outside Himachal Pradesh, including Panchkula, through a proposed tunnel from the Sutlej, subject to cost assessment.
"Himachal needs Rs.7,000 crore to become self-reliant. Through additional revenue streams and economic measures, the state can become financially surplus by 2032," he said.
The CM also referred to outstanding Bhakra Beas Management Board (BBMB) dues and said Himachal expected to receive around Rs.500 crore annually after the issue is resolved.
The cabinet will be expanded soon, Sukhu said.
Regarding the new secretariat building, Sukhu said it would address space and parking constraints....
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