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Our Bureau

Bangalore , Sept. 14

THE Karnataka Government has decided to implement the `purchaser-provider' model to achieve the goal of ultimate viability in the power sector and quality power at affordable rates to the consumer.

This is to ensure reduction in power sector financial losses, identified as the one contributing the most to the fiscal deficit.

This would be achieved by putting in place procedural reforms in subsidy targeting and delivery.

A Cabinet-subcommittee, led by the Deputy Chief Minister and Finance Minister, Mr Siddaramaiah has been set up with representation from agriculture and finance departments.

According to Mr Gurcharan, Secretary (Finance), some of the parameters to reduce the subsidy would be to improve the quality of power by containing losses and pilferage and efficient billing. The provider-purchaser model would be implemented wholly with all the electricity supply companies by entering into prescribed MoUs. Subsidy would be released only under the terms and conditions of the MoUs, he explained.

Mr Gurcharan, who was speaking at a workshop on public financial management and accountability, where a report was released on the status of Karnataka's achievements and shortcomings in this direction, said the State through its sustained reforms has been able to reduce the fiscal stress on the Budget. This had been reflected by the modest surplus in the current year's Budget, he said. Karnataka was on a fiscal correction mode and hoped to achieve its objective of reduction in the consolidated revenue deficit by 2005-06, consolidated fiscal deficit to three per cent of the Gross State Domestic Product by the next fiscal, he added.

More Stories on : Power | Karnataka

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