Farmers’ free power will stay, CM tells Centre

“We have raised a few matters of utmost concern to the state in our comments (on the draft Electricity (Amendment) Bill, 2020) which are detrimental to the state government and utilities. It is the consisted policy of the state government that the farmers should receive free power and it needs to be continued. Therefore, DBT principle should not be applied for agricultural sector,” the Chief Minister told Union Minister of state for power and renewable energy RK Singh, who met him at the Secretariat on Wednesday.

Further, he said that state government has been providing 100 units free for all domestic consumers for which government provides a subsidy directly in advance to Tangedco. “This scheme may also be kept outside the scope of the DBT system,” he said.

On the proposal to allow private franchisee and sub-licencee in power distribution, he said that the provision would only lead to cherry picking of remunerative areas affecting distribution companies directly thereby the public interest causing severe losses.

Palaniswami also expressed his opposition to the proposed fixing of hydropower purchase obligation separately to Tamil Nadu as hydro generation is seasonal and not in the control of discoms.

Under the liquidity infusion package for stressed discoms due to COVID-19, he urged the Union Minister to expedite sanction for Tangedco that has sought financial assistance of Rs 20,622 crore to PFC and REC at a concessional rate of interest.

The CM also wanted the Centre to provide Rs 268.68 crore pending to Tangedco and also convert 1,330.93 crore loan as a grant under the Restructured Accelerated Power Development and Reforms Programme.