Government paid Rs 7,140 crore as consumer and tariff subsidies

GUWAHATI: With a view to giving relief to domestic and BPL (below poverty line) consumers, APDCL has extended around Rs 7,140 crore—Rs 4,044 crore as consumer subsidy and Rs 3,096 as tariff subsidy—in the past five years. The state has around 60 lakh power consumers.

According to sources, since the average domestic power production in the state is about 350 MW, compared to the average demand of around 2,500 MW during peak hours in the summer, APDCL purchases power from various sources at different rates to bridge the gap between power demand and production.

To give relief to domestic and BPL power consumers, the government offers subsidies up to certain consumption levels of units. The government has paid Rs 4,088 crore to APDCL since 2015-16 to make up the revenue gap due to consumer subsidies. 

The government has paid Rs 3,096 crore to APDCL as a tariff subsidy since 2016–17. Tariff subsidy is the amount that APDCL charges less than the tariff rates fixed by the AERC (Assam Electricity Regulatory Authority) from consumers, as the government bears that amount.

According to sources, to meet the huge power demand in the state, APDCL purchases power from around 29 sources, including Bhutan. In December 2023, APDCL purchased power from NEEPCO (hydro) at an average rate of Rs 5 per unit, at Rs 6.50 per unit from NEEPCO (thermal), at Rs 12.40 per unit from NVVNL, at Rs 4 per unit from NTPC (thermal), etc.

According to sources, Assam Power Generation Corporation Ltd. (APGCL) is also taking a pro-active approach to tackling environmental challenges through a series of solar power projects across the state. To further accelerate its renewal energy ambition, APGCL joins hands with Oil India Ltd. (OIL) at a 51:49 equity stake. This strategic partnership aims to make Assam self-reliant and energy independent by developing a staggering 650 MW of solar power projects over the next two to three years.

Also Read: Assam imports 35 lakh eggs and 35 lakh litres of milk daily: Official records

Also Watch: