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Regular-article-logo Sunday, 25 May 2025

State power dues pile up

Minister denies fundscrunch, promises pay

Dev Raj Published 27.10.16, 12:00 AM

Bihar owes Rs 2,625 crore to public and private sector power generation companies for electricity purchased towards meeting the state's energy needs.

The state's own generation capacity is abysmally low, but the per capita energy consumption has increased over the past few years - from 120 units per annum in 2012-13 to around 265 units per annum in 2015-16 - because of better coverage. So, the government has signed agreements to buy 3,017MW of power from central sector power producing companies such as NTPC and NHPC, among other sources. (See chart)

Energy department statistics peg electricity dues at the end of the 2015-16 fiscal at Rs 1,887 crore, which were paid. However, it has accumulated to Rs 2,625 crore for the current fiscal.

"Such things are normal and dues accumulate," energy minister Bijendra Prasad Yadav told The Telegraph. "This is how the work goes on. The Bihar State Power Holding Company will definitely pay for the power purchases."

Bijendra, also the commercial taxes minister, emphatically denied that the government was facing any financial crunch because of over Rs 5,000 crore revenue loss in the aftermath of prohibition.

The power holding company, the umbrella organisation for all power companies in the state, which ideally should be self-sufficient is also expecting a grant of Rs 3,834 crore from the government this fiscal.

Though the government is strengthening the transmission and distribution network, the department still faces problems with billing, collection of money from consumers, transmission and distribution losses because of power theft.

The present consumer base is around 80 lakh.

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