COVID-19: Odisha govt writes to Centre suggesting measures to ease burden of power sector

Amidst the Coronavirus outbreak, Chief Secretary of Odisha government on Wednesday wrote to the Centre suggesting measures to ease the immediate burden of the power sector, so the state government can provide substantial relief on electricity tariffs to public and industry bodies in Odisha.

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."

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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 that 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, the 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. 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. 

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Coronavirus outbreak

The Odisha government on Wednesday declared more areas as containment zones for surveillance and contact tracing of novel Coronavirus infection, though no fresh positive case was detected in the state since Tuesday. The total COVID-19 case in the state remains 42. Two persons have already been cured and discharged from hospital while one patient died and the number of active cases is 39. Out of 42 positive cases, 34 from Bhubaneswar, 3 from Bhadrak and one each from Cuttack, Puri, Kalahandi, Jajpur, and Kendrapara. As per the latest update by the Union Ministry of Health and Family Welfare, so far the total number of positive cases in the country is 5,274 and there have been 149 deaths due to COVID-19.

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(With agency input)