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IMC Can Purchase Power Directly from grid: MPERC

  • The Indore Municipal Corporation (IMC) is entitled to open access to electricity and it can purchase power directly from the grid, said Madhya Pradesh Electricity Regulatory Commission (MPERC) chairman Rakesh Sahni.Sahni was in the city in connection with the hearing on objections to the proposed power tariff hike on Wednesday.During his interaction, he clarified that there are certain guidelines for open access to electricity and after meeting the norms, the municipal corporation can avail the benefit. He also said that after meeting the norms, if the municipal corporation faced any problem in direct purchase of electricity, it could take up the issue with the regulatory commission.
  • It is up to the civic body to decide whether it wanted to purchase electricity directly or not. The distribution company cannot stop and suggest them to do so, Sahni said.City-based NGO, Vikas Mitra Drishti 2050, raised the issue of direct purchase of electricity. Kishor Kodwani of the NGO argued that direct purchase of the electricity can save 50% cost on electricity. According to Kodwani as of now, Indore Municipal Corporation (IMC) is purchasing electricity from MP Western Region Distribution Company at Rs 4.63 per unit. If the civic body is allowed to purchase power directly from the grid, then it will almost halve the cost at Rs 2.58 per unit.In this way the IMC can cut its electricity expanses by half. As of now, IMC spends around Rs 121 crore and this figure is expected to go up to Rs 241 crore in next year if the proposed tariff hike is implemented. IMC spends a major chunk of its electricity cost on Narmada water supply scheme.
  • Corporator Kailash Yadav had mentioned in his objection that the Narmada Water Project is one of its kind in Asia and water supply is the job of government, which is being carried out by the IMC. He argued that the IMC should be given exemption from power tariff hike.On this, the MPERC chairman said that right from railways, government offices and municipal corporations, every organisation is working for the people. It is not possible to make a separate tariff system for them all. He said that giving tariff exemption was not within the purview of the commission and IMC was not alone the civic body to run water supply scheme like Narmada, Bhopal too is working on water supply system from the Narmada river.

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