Sub-panel to study FSA

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Hyderabad: Chief Minister N. Kiran Kumar Reddy reiterated that Fuel Surcharge Adjustments in all electricity bills cannot be withdrawn at this stage due to the poor financial position of the power utilities. He also admitted that the power supply position will get worse in the coming summer months as demand increases but the amount of power generated reduces.
In a meeting at Gandhi Bhavan on Wednesday, convened by PCC chief Botsa Satyanarayana to discuss the modalities for conducting the regional Congress convention at Vijayawada, several party leaders brought to his notice that levying FSA has placed a huge burden on consumers and will work against the party in the coming elections.
The CM intervened and said it was better for Congress leaders to explain the position to the people. He said that till 2009 (during YSR Rajasekhar Reddy’s regime), FSA was not collected, which only increased problems for the already burdened power utilities in the state. He also said that for those years when government wanted to levy FSA in a phased manner, it was held back due to court directions.
“We are already subsidising `7,000 crore every year for power consumers. We have to continue subsidies, improve the supply system, as well as improve power generation. Striking a balance among all three is not an easy job, yet we are able to put up a good show. It is not possible at this stage to withdraw the FSA,” Reddy said.
He said that he has constituted a Cabinet sub-committee to look into all aspects including levying FSA and increase in power tariff. “Let the Cabinet sub-committee go through the details of the situation and come up with alternatives. I will definitely consider them,” the CM said.
Finance minister Anam Ramnarayana Reddy said that in another month the new north-south corridor to transmit power will be ready, allowing power utilities to purchase more power from other states.
Meanwhile, it was decided in the meeting that in the regional convention at Vijayawada 50 per cent of the speakers should be grassroots workers and leaders, who will be able give state party leaders first-hand information on the ground realities.
The CM assured the meeting that the special leave petition filed by the state government on the local body polls, including BC reservation, will come up before the Supreme Court shortly and he was hopeful that elections to local bodies would be held soon. He told party leaders and ministers to be ready to explain facts and government plans in response to issues that will be raised by party workers in the Vijayawada meeting