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Friday, March 5, 1999

Budget puts big burden on GEB

EXPRESS NEWS SERVICE  
VADODARA, March 4: An annual burden of approximately Rs 50 crore is likely to be added to expenditure of the Gujarat Electricity Board (GEB) following four per cent hike in freight charges, even as the Board awaits details about the exact calculations from the Railway Board.

Highly placed GEB sources told Express Newsline on Thursday that although the exact details were being worked out, from the past experience the additional burden is expected to come around Rs 50 crore to Rs 60 crore.

Asked whether the Board would hike the tariff following the raise in freight charges, GEB chairman Nalin Bhatt said it was premature to comment. ``Let the Parliament first pass the Budget and then we will come to know the details,'' he added. Sources inform that every month the Board spends nearly Rs 60 crore towards 10 to 12 lakh tonnes of coal. This in addition to an estimated Rs 90-95 crore borne towards freight charges.

Sources further say even in the past when the freight charges have been increased, the GEB has not necessarily gone in for hike in tariff. ``Given the present situation, the Board is unlikely to hike the tariff,'' sources say, adding that if the tariff is hiked it would be a unpopular step.

An official said as it is the Asian Development Bank (ADB) has laid certain recommendations, including developing profit centres. Sources claim various agencies, including the Price Waterhouse, appointed by the GEB itself to improve suggest measures for improvement, from time to time, have also recommended to quantify the subsidies given in the agricultural sector.

The agency had objected to the amount being calculated on the basis of the HP and instead recommended to meter the agricultural connections.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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