Ranchi: Here's some good news for Jharkhand Bijli Vitran Nigam (JBVNL) consumers.

The state government has decided on subsidies on enhanced power tariff for domestic and commercial users in both urban and rural areas.

Urban consumers, burdened with additional rates between Rs 1.90 and Rs 2.50 per unit, will have to pay only between 25 paise and Re 1 provided they restrict their power consumption within 800 units per month. The government will give a subsidy being between Rs 1.25 and Rs 2.25 per unit in their cases.

Those consuming more than 800 units a month will, however, have to pay an additional Rs 1.40 per unit, compared to the earlier tariff, as the subsidy in their case will be just 50 paise.

Rural consumers under Kutir Jyoti scheme, who were earlier paying Rs 1.25 per KWh (usually referred to as a unit) and were supposed to pay Rs 4.40 following the hike, will now pay Rs 1.40 per unit and have to bear an additional burden of 15 paise only, thanks to the Rs 3 subsidy granted by the government.

Those in villages who consume over 200 units a month had to pay Rs 4.75 in place of earlier Rs 1.70 per unit after the hike. At subsidised rate, they will pay only Rs 1.75 per unit.

Besides buffering costs for consumers, the government will also pay Rs 1,040 crore to JBVNL to compensate the loss the discom is expected to incur because of the subsidised tariff.

The JBVNL had earlier this year petitioned for upward revision of power tariff, which was approved by the Jharkhand State Electricity Regulatory Commission on April 27.

Chief minister Raghubar Das had, however, said that his government would consider giving subsidy. The state cabinet, at a meeting on May 3, took a favourable decision, but the same was not announced perhaps because the model code of conduct was in force in the wake of Silli and Gomia Assembly bypoll.

The energy department finally issued a resolution on the matter on June 1 and the subsidies were revealed to a section of media on Tuesday. The notification date is yet to be announced.

"It seems the subsidies are being given in view of the upcoming general elections. Nevertheless, we are happy," said Rakesh Sinha, a retired banker and resident of Lalpur.