Outlay on energy sector down to 11 percent

The Government is embarking on a host of new projects to supplement its energy capacity with huge projects in Bellary, Raichur and Bijapur. This in itself will require a lot of expenditure. In the next three months, the State will require to purchase power to stave off the impending power crisis at an approximate cost of Rs 300 crore a month. This is assuming the rates per unit do not increase in the months of April and May, when power is costliest as all States queue up to buy power.

The State has also declared its support capital of Rs 2,500 crore to the ESCOMs for the free power being supplied to the irrigation pumpsets. How it manages to pay this amount remains a mystery, as the State has already filed a review petition before the Karnataka Electricity Regulatory Commission seeking revision of tariffs as it finds itself unable to pay the Rs 3,922 crore it owes to the ESCOMs for the year 2008-09.

Boosting production from renewable energy sources has not found a mention, despite the State releasing a renewable energy policy declaring its intention to add 4,200 MW in the next five years.

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