As he announced that over two crore domestic consumers will benefit from the Gruha Jyothi scheme, which will be implemented at an estimated annual cost of ₹13,910 crore, Chief Minister Siddaramaiah on Friday highlighted the financial crisis in the energy sector. He said the outstanding loan of electricity companies had increased from ₹51,087 crore in March 2018 to ₹91,911 crore by March 2023.
While placing the blame on the previous government for the dire financial state, he proposed the ‘Vision document – 2035’ for the revival of the sector.
The document will cover aspects related to electricity generation, transmission, and supply in the power sector. Along with the improvisation of the financial status of electricity supply companies (escoms), the document is also expected to help with the supply of standard electricity to all the consumers in Karnataka.
“Instead of strengthening the energy sector, which is the backbone of the State economy, the previous Government has pushed them to a dire state,” Mr Siddaramaiah said in his budget speech.
Mr. Siddaramaiah further said that the cumulative loss of electricity companies had increased from ₹4,725 crore to ₹17,056 crore between 2018 and 2023. “This clearly portrays the poor administration by the previous government,” he said.
He also pointed out that the amount owed by the escoms to various electricity generation (Gencos) and transmission companies had gone up to ₹16,132 crore by March 2023 while it was only ₹11,956 crore in March 2018.
With escoms not making timely payments, even the Karnataka Power Corporation Limited (KPCL) is facing financial crisis, the Chief Minister said. The corporation owed ₹31,145 crore as of March 2023 (₹19,477 crore in March 2018), he said.
In the Budget presented earlier this year, Chief Minister Basavaraj Bommai had announced a grant of ₹13,743 crore to the power supply companies.
“Electricity is an essential and inevitable basic necessity of modern life. But I am a witness to thousands of families facing hardship because of the unaffordability of electricity. Just as there is Anna Bhagya to ensure food security, we have started Gruha Jyothi to ensure energy security,” Mr. Siddaramaiah said.
No new schemes related to solar, hydel or wind energy were announced in Siddaramaiah’s budget.
