Team Herald
PANJIM: While Goa is looking forward to attract some big-ticket investment for economic growth and employment creation, the NITI Aayog has cautioned government over its “high” power tariff – 5.80 per kWh- for the industry, which could blunt its competitive edge.
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However, the State Electricity Department claimed that the Goa’s energy tariff for industries is one of lowest in the country.
NITI Aayog in its document presented to Chief Minister Pramod Sawant, last week, has recommended the State government to reduce the technical and commercial losses, which, at 12.86 per cent, is also high for the sector.
“Goa has Rs 5.80 per kWh industrial tariff which is high. Hence, there is an opportunity to reduce the electricity duties and reduce tariff for industrial electricity and make industry export competitive,” the Aayog said.
“Tariff reforms could include expanding ‘Time of Use Time of Day’ pricing to more customers, including residential users, adjusting peak tariff slots,” it said further.
The Electricity Department, however, defended that the energy tariff for industrial users in Goa, is much lower than what is charged in the States like Maharashtra, Telangana and Madhya Pradesh among others.
“The power tariff in Goa for domestic as well as industrial sector is much much lower. In fact it is the lowest in the country,” said Stephen Fernandes, Chief Electrical Engineer.
“We don’t generate power. We depend on Central generating stations and open market. Despite that, our tariffs, including those for domestic, is at a lower side. We will have to study the findings of NITI Aayog,” he added.
Goa does not have any power generation of its own and is dependent totally on CGSs (Central Generating Stations) for power. Presently, the State receives power from Western Region (WR) and Southern Region (SR) and some is procured from the open IEX (Indian Energy Exchange).
Industry bodies like the Goa Chamber of Commerce and Industry (GCCI) and Goa State Industries Association (GSIA) have often complained about Goa’s erratic power supply, unplanned power cuts and inflated power bills.
The Government had recently approved purchase of 120MW of power from open market to meet the requirement of industrial sector.
When contacted, Goa Small Industries Association (GSIA) treasurer and Pilerne Industrial Estate president Mayur Dhume said, “Any reduction in power tariff and quality of power is welcome.”
Dhume said that in the past power supply to the industries was bad and in the last couple of years quality of power has improved.
