Karnataka Power Crisis: Centre Withholds Supply to State Over Dues of Rs 1000 Cr

The state may avert any immediate shortage of supply. However, the government expects the demand to increase soon.

Karnataka might face an acute shortage of power in the next few months.

(File Photo: IANS)

Karnataka might be staring at a power crisis, with the central government withholding 1,000 MW of power to the state over the non-payment of dues, as per a report in The Times of India.

The state has five electricity supply companies (Escoms) and owes the Central Generating Stations (CGS) about Rs 1,000 crores. The Bommai government is raising funds to pay the CGS and the National Thermal Power Corporation Limited (NTPC) presently.

According to the report, senior government officials have added that the non-payment of dues may result in the non-availability of 1,000 MW of power, post-monsoon season, at the end of this month.

Coal Supply Low

The coal reserves in the state are enough for only two or three days of supply. Commenting on the imminent power emergency, Energy Minister V Sunil Kumar told The Times of India, “CM Bommai has spoken to the Union ministry about the withheld power. We have convinced him of the need for a special package to pay the Centre, and the finance department has okayed it.”

Additional Chief Secretary (Energy) G Kumar Naik stated that the government will now pump equity into the Escoms and will request financial corporations to close old loans and register for fresh ones at cheaper interest rates to repay the Centre. Nevertheless, there is no confirmation on this front as the finance department has to take a decision over the matter.

Government officials estimate that it may take two months to revive the share of power at the centre. In the meantime, due to heavy rainfall in the state and lower demand, the state may be able to mitigate the crisis with the help of its 13 hydel stations and renewable energy distribution.

Karnataka’s average demand for power is presently calculated to be between 8,000-8,500 MW per day, but as the Covid-19 pandemic subsides, government officials foresee the demand spiking two times over in the next two months.