In a move set to make power cheaper for consumers of state-owned power distribution companies, the Gujarat government on Tuesday announced a 40 paisa reduction in fuel surcharge under the Fuel and Power Purchase Price Adjustment (FPPPA).
With this decision, the state government will charge Rs 2.45 per unit of electricity instead of the current rate of Rs 2.85 per unit.
The reduction will be implemented from a three-month period between October and December, and will benefit the state’s 1.75 crore power consumers to the tune of Rs 1,120 crore, according to officials.
Finance and Energy and Petrochemicals Minister Kanubhai Desai announced this decision at a press conference held in Gandhinagar on Tuesday.
The reduction will be applicable to consumers of four state-owned power distribution companies – South Gujarat Power Company Limited (DGVCL), Central Gujarat Power Company Limited (MGVCL), West Gujarat Power Company Limited (PGVCL) and North Gujarat Power Company Limited (UGVCL). ).
According to Desai, due to the Ukraine-Russia war and the change in the royalty price of coal in Indonesia, coal was very expensive and the state had to face many problems. In an official release, due to proper and efficient power purchase management and keeping in view stable power purchase rates, the state government has decided to reduce fuel duty by 40 paise per unit.
Desai said that the reduced fuel fare will be applicable for three months from October to December. The FPPPA will remain so in the future unless further amended.
According to the official release, residential units consuming up to 100 units can save around Rs 46 per month after reducing the fuel tariff.
The Energy Minister also said that under the Kisan Suryodaya Yojana, a plan is being made to provide electricity to farmers for agricultural purposes during the day. And currently, only 4% of the villages in the state are yet to be covered under the scheme. In Gujarat, out of a total of 18,225 villages, 17,193 villages receive agricultural power with more than 20 lakh agricultural electricity connections. Out of the total villages, 16 thousand 561 villages (more than 18.95 lakh electricity connections) have started getting electricity in the afternoon.
“The remaining 4% of villages (where farmers do not get electricity for agricultural use during the day) are from Devbhoomi Dwarka, Kutch and Banaskantha districts. And the government has planned to provide electricity for agricultural purposes during the day in February-March,’ said Desai.
The number of such villages is 632, with 1.5 lakh farmers, an official release said. Desai also announced another decision of the state government under which Micro, Small and Medium Enterprises (MSMEs) will get electricity connections of 150 kv.
Desai said, “Currently we provide 100 KV power connections to MSMEs. And if there is a slight increase in it, they (MSMEs) are heavily penalized and have to install a new transformer. Now the government has decided to change the rules and give 150 KV (power).
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