The Hindu : Furore over end to power tariff subsidy

Online edition of India's National Newspaper
Wednesday, Dec 18, 2002

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Other States - West Bengal

Furore over end to power tariff subsidy

By Our Special Correspondent

KOLKATA DEC. 17. A day after the West Bengal Electricity Regulatory Commission (WBERC) put an end to cross-subsidy in power tariff making all consumers equal, the Government and political parties incorporated the issue of tariff and subsidy in their agendas to manage a backlash from the consumers.

While the ruling Leftists threatened a State-wide demonstration tomorrow, the Opposition created a furore in the Assembly by burning copies of the order. The SUCI said it would call for a Bengal bandh in January.

Realising that the order would hurt all categories of consumers, the CPI(M), leader of the ruling Left Front, held an emergency meeting along with the partners today and decided to petition the Prime Minister to withdraw the Central Act. "We strongly protest the withdrawal of cross-subsidy. This will deeply hurt the poor and the lower middle-class people,'' Anil Biswas, CPI(M) State secretary said.

The WBERC on Monday issued an order in connection with a court case involving the CESC Limited, the private power utility, that all consumers will have to pay the same rate of Rs 3.90 a unit consumed from February next, unless the Government decided to subsidise any category /categories of consumers. The total subsidy runs into crores of rupees, which the Buddhadeb Bhattacharjee Government would find it difficult to handle.

According to the Front, the decision would affect at least 14 lakh out of the 18 lakh consumers. The State Government said it would move the Kolkata High Court challenging the decision.

The Power Minister, Mrinal Banerjee, told the Assembly today that the Government was seeking views from legal experts on the issue. It would move the Supreme Court, if necessary. "The decision is unfortunate."

He said the Chief Minister had sent a communication to the Prime Minister demanding immediate change in the central laws dealing with cross-subsidy in power tariff.

The Assembly witnessed uproarious scenes when the Trinamool Congress, the Congress and the SUCI protested against the withdrawal of cross-subsidy on power tariff. The Trinamool MLAs burnt copies of the order when the Speaker, Hashim Abdul Halim, refused to admit an adjournment motion moved by them. They raised slogans against the Government saying it was "indifferent" to people's miseries. They demanded a rollback of the decision.

Meanwhile, R.P. Goenka and his son Sanjiv, the chairman and the vice-chairman of the RPG Group, today met the Chief Minister to discuss the order and its impact on consumers.

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Furore over end to power tariff subsidy