Shocked by losses, PSU considers green energy as bailout | Ranchi News

Ranchi: The public sector company (PSU), Jharkhand Bijli Vitaran Nigam Limited, reeling from the financial losses, is now considering green energy as an alternative.
According to audited reports for the 2018-19 fiscal year, the nightclub suffered a loss of Rs 212.17 crore. The main role of the PSU is to obtain electricity from producers and distribute it to consumers and to collect the tariff from them at a rate decided by the state electricity regulatory commission.
As the PSU bought power at a very high cost and distributed it to consumers at a subsidized rate, the difference became a financial burden on the PSU. If electricity is purchased at a lower price, losses will decrease, which otherwise accumulate each year. The PSU is now considering solar power as a cheaper alternative.
JBVNL director (operations) KK Verma said there are around 45 lakh of JBVNL-powered electricity consumers in the state. “Of these 45 lakh consumers, about 36 lakh are in rural areas, whose power supply is heavily subsidized by the state. The government gives high priority to rural consumers and those in economically weaker sectors, ”he said.
Regardless of how much consumers pay on the electricity bill, JBVNL has to purchase electricity at a rate of around Rs 4.75 per unit from power generators. This rate often increases on days when power consumption is above a fixed limit.
Verma said that of the 2,000 MW of electricity required per day in the state, 35-40% of the electricity is consumed by the 35 lakh consumers who receive a subsidy. Barely 10 to 15% of them pay the bills. “The state government has launched a one-time settlement program to encourage consumers to pay off their excess contributions by December 15, 2021. The government will write off interest on pending utility bills with equity of 1,700 crore rupees if consumers pay their unpaid bills. “, he said, adding that once dues were paid, switching to cheaper sources of food was a viable option.

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