Special Correspondent

HYDERABAD: Chief Minister Y. S. Rajasekhara Reddy has turned down plea of power utilities to increase the tariff at least marginally to offset the additional financial burden caused due to various factors.

Sources in the Chief Minister's Office said on Tuesday that officials of power utilities made a presentation to Dr Reddy on the general power supply situation during kharif, reduction in transmission and distribution losses, rationalisation of tariff and overall performance of the sector. Officials told Dr. Reddy that power utilities faced an additional burden due to shortage of gas supply resulting in increased payment of Rs. 103 crores and additional power purchase worth Rs. 170 crores. They informed him that the additional burden had to be passed on to consumers and favoured a tariff hike. Dr Reddy rejected the proposal, saying there would be no hike for this year and also the next three years.