Govt to hold second round talks on co-generation power price

B D Narayankar

Press Trust of India

Bangalore, Oct 11: Karnataka Government would hold second round of talks this week with the management of sugar factories to decide on co-generation power price hike.

The management of sugar factories have been demanding increase of bagasse co-generation power price from Rs four to Rs 6.50 per unit. "We will hold second round of talks with sugar factory managements and will discuss the issue of hiking price with Chief Minister D V Sadananda Gowda in the next four days," Energy Minister Shobha Karandlaje told reporters here.

The government has already met officials of 38 sugar factories on the issue, she added. Of the 450 MW power generated by co-generation plants across the state, Karandlaje said the government would get its share of 150 MW power under the purchase agreement with sugar factories.

"Under the agreement, the government will be purchasing power ranging between Rs 2.80 to Rs 4 per unit," she said. However, the sugar factories are demanding a hike of Rs 6.50 per unit for remaining 250 MW power generated by them, Karandlaje said.

Meanwhile, Karnataka industrialists have agreed to the government's plea for shutting down for a day their units located in seven different industrial estates. The state government has been making efforts to purchase more power from sugar factories to tide over the acute shortage in the wake of short supply of coal to its thermal power plants.