CHANDIGARH, June 26 — The Punjab Government today approved the increase in power tariff ranging from eight per cent to 14 per cent various categories of consumers, including domestic and Industrial. A decision to this effect was taken at a meeting held late this evening at the residence of the Punjab Chief Minister, Mr Parkash Singh Badal. However, the free power facility to the agriculture sector will continue and there will be no rethinking on this issue.

Among those present at the meeting were Capt Kanwaljit Singh, Mr Balramji Dass Tandon, both senior Ministers and top brass of the PSEB, including its Chairman, Mr G.S. Sohal, and top officers of the state Power Ministry.

Following meeting, Mr Badal instructed PSEB authorities to hold a press conference tomorrow to inform the people of the state with regard to the tariff. Sources said that the Board would mop up Rs 325 crore by revising the tariff. Besides, the state government had assured a financial aid of Rs 200 crore to the PSEB. And the board itself had assured the State Government to raise Rs 175 crore from its own resources. Board would get from all sources increasing revision of tariff about Rs 700 crore while its projected loss for the current financial year was Rs 950 crore.

Official sources said that in September the Thein dam hydro project would also become operative enabling the board to earn Rs 200 crore or so by selling the power from that project to deficit states.

According to information available from unofficial sources, the increase in the tariff for small domestic consumers and small scale industry would be near eight per cent while it will be highest to the tune of 14 per cent for commercial sector and bulk consumers. The medium and large scale industry would be covered under 10 per cent revision of tariff. The Government has assured to the industry to keep the word which it had given to its representative at the earlier meetings held for achieving consensus on the issue of power tariff revision.

The issue of power tariff hike was hanging fire for the past several months. Earlier it was revised in July 1998. Though the PSEB is an independent body but the state government has recently assumed the role of deciding vital issues pertaining to the board.

However, there was a no discussion on the issue of withdrawing a free power facility to agriculture sector. A senior official who attended the meeting told TNS that the Chief Minister, Mr Badal conveyed to all those present in the meeting that there would be no reviewing of the decision of free power to agriculture sector.