Southern States - Tamil Nadu   

Don't collect revised power tariff: HC tells Govt.

By Our Staff Reporter

CHENNAI AUG. 1. The Madras High Court has restrained the Government from insisting industrial units pay the revised power tariff as determined in the Energy Department order dated November 28, 2001.

Dismissing as withdrawn a batch of over 200 petitions from textile, steel rolling and pharmaceutical units, the First Bench comprising the Chief Justice, B. Subhashan Reddy and Justice D. Murugesan said, ``for a period of two months from today, the escalated electricity tariff shall not be insisted as determined in the G.O.''.

(The petitioners had offered to withdraw their applications in order to `pursue alternative remedies' such as the State Electricity Regulatory Commission). The Bench, however, separated two petitions challenging the power tariff revision— filed by the Southern Railway and the Chennai Port Trust— and posted them after two weeks for further hearing.

According to the petitioners, the State Government had increased power tariff for industrial purposes by more than 50 per cent and the maximum demand charges were also doubled, from Rs. 150 per KVA to Rs. 300.

When the average cost of electricity production is Rs. 2.50 per unit, according to the Tamil Nadu Electricity Board, why should the Government revise it between Rs. 3.50 and Rs. 4.50, they stated.

The Government had admitted that the loss on the power front was only Rs. 1,200 crores, which could be made good by increasing the power tariff structure by just 18 per cent, the petitioners said.

Also, as per the Electricity Regulatory Commissions Act 1998, which came into force on April 25, 1998, the State Electricity Regulatory Commission alone was responsible for rationalisation or revision of tariff and formulation of environmentally benign policies. The steep revision would be detrimental to industrial development since the power-intensive industries spent about 25 to 30 per cent of their total input cost on electricity alone.

Printer friendly page  
Send this article to Friends by E-Mail

Southern States

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• No change in stance: Jayalalithaa
• Web-based training for policewomen soon
• Dry Cauvery disappoints elephants too
• No violation of oath of office, says MDMK Minister
• Need to regulate content on Internet stressed
• Drought threatens to hit ST collection too
• Rich haul of IMFL
• IT project for social development to be extended
• Case registered against Tamaraikani
• Don't collect revised power tariff: HC tells Govt.
• I-T investigation director shifted
• 'Stop Karnataka from making Billigundu claim'
• 'Revise credit limit to lift handloom stocks'

Copyright © 2002, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu