Highlighting the COVID-19 situation across the country, Chief Secretary Asit Tripathy said, "This extraordinary situation demands extraordinary approach in all fronts including the power sector, being the vital enabler for all other essential services. There are lots of demands in the state from the public as well as Industry bodies to grant relief in electricity tariffs for their survival."
The letter addressed to Sanjeev Nandan Sahai, Union Power Secretary, lists out the measures that can be taken to ease out the burden on the sector, Tripathy said the coal price can be reduced for this period linked to the recovery of the operation cost only, deferring all capital expenses such as depreciation (loan repayment), interest payments and Return on Equity (RoE).
Secondly, capacity charges, fixed charges can be reduced by 50 per cent which can be worked out by deferment of their capital cost viz depreciation, interest cost and RoE.
In addition, Tripathy said the inter-state commission charges can be reduced by 50 per cent for the year 2020-21 or for six months.
"Power Finance Corporation (PFC), Rural Electrification Corporation Limited and other Financial Institutions should provide loans to the Power sector at a concessional rate," the letter added."We urge the Central Government to extend a financial package to the power sector reeling under such an unforeseen disaster for the refit of the poor consumers and continuity of essential services," it added.
( With inputs from ANI )