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TN power utility not to withdraw power subsidy

- September 26, 2022

Chennai, Sept 26 (BPNS)

Tamil Nadu Generation and Distribution Company (Tangedco), the power utility of the state government will not be pushing to withdraw the power subsidy for consumers. While the Tamil Nadu Electricity Regulatory Commission has given its green signal to withdraw power tariff subsidy, the Tangedco top brass has decided to continue with the subsidy.

Sources in Tangedco told BPNS that this is due to the fact the power utility had drawn flak from across the state owing to the recent power tariff hike. The opposition and general public had come out against the power tariff hike.

It may be noted that in Tamil Nadu the government had mooted a proposal for the public to voluntarily give up the subsidy on power charges. At present for the first 100 units power is free in the state and for the next 101 to 200 units, there is a 50 percent subsidy. This would mean that a consumer who prefers giving up a subsidy will have to pay Rs 675 extra.

Sources with the state power department told BPNS that if Tangedco tries to implement the scheme there would be widespread criticism and hence the state is planning not to go overboard on the same. However, the state power department is planning a massive campaign blitz on how the Tangedco and the state is benefitted if people voluntarily give up the subsidies. The campaign will be conducted with movie and television stars being roped in and the Tangedco and the state power department believes that if the campaign is extensively done, more people would voluntarily give up the subsidy thus leading to the Tangedco becoming more strong, financially.

C.M. Swamidas, Consumer Protection Chair of Madurai while speaking to BPNS said, “Tangedco have to first make this a household discussion subject and then maybe people would be more inclined to give up the subsidies. Otherwise, this is loot.”

With the power tariff hike having drawn flak Tangedco and state power department is buying time for implementing the voluntary subsidy scheme.