Centre pressurising BBMB to continue subsidised power for NF

CHANDIGARH, August 5: The Bhakra Beas Management Board (BBMB) seems to have resolved not to buckle under the pressure being mounted by th...

CHANDIGARH, August 5: The Bhakra Beas Management Board (BBMB) seems to have resolved not to buckle under the pressure being mounted by the Centre to continue supplying electricity at subsidised rates to the National Fertilizers Limited, Nangal, a centrally funded public sector undertaking.

Sources in the BBMB disclosed that the Union Ministry for Power wanted the BBMB to supply electricity to the power-intensive NFL at 66 paise per unit. The reason being sighted was that at the time of deciding about the location of the fertilizer factory in 1950s, power in the region was surplus. Since the most important factor in commissioning of the fertilizer factory at Nangal was the nominal rate of electricity, the issue should continued to be viewed in the historical perspective.

However, it was a matter of record that the BBMB partner states of Punjab, Haryana and Rajasthan had been purchasing electricity from the Central pool of the National Thermal Power Corporation (NTPC) and National Hydel Power Corporation (NHPC) at global rates varying from Rs 2.50 per unit to Rs 3.50 per unit. The partners had been objecting to the subsidised power tariff rates for the NFL which was a cent per cent commercial unit of the government of India.

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During a meeting of the BBMB held in January, it was decided to issue a notice to the NFL to pay at a rate of Rs 1.93 per unit for the year 1998 ending on December, 31. For the 1997 the rate was fixed at Rs 1.83 per unit. In fact, the NFL’s contract with the BBMB for subsidised electricity supply expired on June 30, 1996 resulting in arrears of Rs 22 crore.

Financial Adviser BBMB, Satish Loomba when contacted admitted that the Union Ministry for Power was wanting to continue with subsidy to the NFL. He personally visited Delhi to hold discussions with the Joint Secretary Power (Hydel) J.Vasudevan on the issue.

Loomba said that the partner states had decided in the Board meeting to charge NFL at commercial rates on the pattern of the Punjab State Electricity Board meant for bulk consumers.

He disclosed that a tariff formulation committee was constituted earlier by the BBMB which after studying the energy scenario in the region recommended charging at global rates from the fertilizer units like the NFL and also the Rajasthan Fertilizer Factory.

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It is learnt that in May 1991, the Union Ministry of Power had permitted the BBMB to go ahead with applying global rates for electricity supplied to the NFL following which some hike was introduced.

Sources said that the NFL management had objected to the imposition of hiked power tarrif which could lead to closure of the unit.

Another view expressed was that the Centre should reimburse the subsidy amount to the BBMB which would reduce the financial burden on the partner states or introduce barter system.

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