Decision whether to continue the subsidy of 20 paise per unit

Kerala Power Minister A K Balan said on Wednesday, the decision whether to continue the subsidy of 20 paise per unit given to all power consumers by the previous UDF government was a policy matter to be decided by the LDF and the cabinet.

THIRUVANANTHAPURAM: Kerala Power Minister A K Balan today said the decision whether to continue the subsidy of 20 paise per unit given to all power consumers by the previous UDF government was a policy matter to be decided by the LDF and the cabinet.

He was speaking to reporters in the wake of the State Electricity Regulatory Board annoumcing the new tariff with effect from December 1, 2007.

The commission has also asked the government to compensate the shortfall in revenue on account of subsidy to KSEB that would come to about Rs.120 crores, Balan said.

The UDF government at the fag end of its rule in 2006 gave discount of 20 paise per unit without the approval of the cabinet and finance department, he said.

The finance department refused to compensate the shortfall, he said.

In effect, it was stated that if government failed to take a decision on the subsidy issue, power consumers in the state would have to pay 20 paise more per unit of power from than what they were paying now, from December 1.
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Earlier in the day, Chief Minister V S Achuthanandan said the government was studying the issue. However, Achuthanandn told reporters after a cabinet meeting that a decision that would put more burden on people would not be taken.
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