For the first time, the State plans to bring in private investment into its power transmission network through an Infrastructure Investment Trust (InvIT).
InvITs are investment vehicles that allow investors to buy and operate infrastructure projects. “Infrastructure Investment Trust (InvIT) which is gaining increased importance in distribution sector is being established in Karnataka Power Transmission Corporation Ltd. (KPTCL) after the State government’s approval. It is intended to generate an investment of ₹5,000 crore through InvIT and utilise the same for different schemes,” Chief Minister Siddaramaiah said.
He said that the Godhna Thermal Power Plant, which is Karnataka Power Corporation Ltd.’s (KPCL) power station in Chhattisgarh will finally be operationalised this year. The project with a capacity of 800 MW and established at a cost of ₹13,000 crore has been pending since 2008 due to problems with coal linkage, among other things. A whopping ₹8,833 crore has also been earmarked for the establishment of 100 new substations.
Reducing burden on GPs
To reduce the burden of electricity bills on gram panchayats (GPs), Mr. Siddaramaiah announced the installation of distinct phase wires for streetlights in GPs by electricity supply companies. This will be implemented in a phased manner at a cost of ₹850 crore.
The government will also establish solar microgrids under public private partnership model to reduce the electricity costs incurred by GPs.
Subsidy schemes
The allocation for Gruha Jyothi scheme, under which free electricity up to 200 units is given to domestic consumers, has been increased from ₹9,657 crore in 2024-2025 to ₹10,100 crore this year. An allocation of ₹16,021 crore has also been made for providing power supply for irrigation pump sets (up to 10 HP capacity) under financial assistance scheme of State government.
Published – March 07, 2025 09:53 pm IST