On Tuesday, the Gujarat Government stated that the Fuel and Power Purchase Price Adjustment (FPPPA) fuel surcharge would be reduced by 40 paise, which will lower the cost of electricity for customers of the state-owned power distribution companies in the state. As a result of this decision, the state government would now charge Rs 2.45 per unit of power rather than the present cost of Rs 2.85.
A windfall of Rs 1,120 crore will be provided to the state’s 1.75 crore electricity users when the reduction takes effect in October.
At a press conference on Tuesday, Kanubhai Desai, Minister of Finance, Energy, and Petrochemicals, made the announcement.
The reduction will apply to the consumers of four state-owned power distribution companies — Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited (MGVCL), Paschim Gujarat Vij Company Limited (PGVCL) and Uttar Gujarat Vij Company Limited (UGVCL).
According to Desai, coal had become extremely expensive during the conflict between Russia and Ukraine, and the state had encountered numerous challenges as a result of changes in coal royalty prices in Indonesia.
An official statement said that the decision was taken owing to appropriate and efficient power purchase management and considering the stable power purchase rate.
According to Desai, the lower gasoline fee will go into force during the three-month period of October through December and will stay in place until the FPPPA is further amended.
An official statement states that the Residential units with a monthly consumption of up to 100 units will be able to save about Rs 46 if the fuel surcharge rates are reduced.
The Energy minister stated that the state government has also planned to supply farmers with energy for agricultural purposes during the day as part of the Kisan Suryoday Yojana. There are now 4% of the state’s villages that are not yet covered by the program.
In Gujarat, out of 18,225 villages, 17,193 receive agricultural electricity through more than 20 lakh power connections. Of all the villages, 16,561 (more than 18.95 lakh power connections) have begun to receive electricity during the day.
Desai said, “Most of the remaining 4 per cent villages (where farmers do not get power for agriculture use in the daytime) are from Devbhumi Dwarka, Kutch, and Banaskantha districts. The government is planning to provide them power for agriculture purposes in the daytime by February-March”.
The official statement added, the number of such villages is 632 and it covers 1.5 lakh farmers.
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