Union Territory Dadra Nagar Haveli is readying to start its own' Electricity Corporation to overcome the financial burden on the government Electricity Department. Since last two years, The central government is making compulsion on Dadra Nagar Haveli to have its own electricity corporation. Cabinet has also approved the proposal to set up its own electricity corporation. Dadra Nagar Haveli and Silvassa Power Secretary S P Dikshit two year ago had stated that Rs 100 crore was paid as revenue to the Central government, which at present is going in loss of Rs 200 crore, because of purchase of electricity from Maharashtra and Gujarat at higher rate to meet the demand of electricity.
Consumption of electricity is 500 mega watts daily whereas approval is of only 380 mega volts and due to increase in demand of power, Ministry of Power had sanctioned 50 mega watts extra from January 2009.
However, the proposal of setting up of the electricity corporation was opposed by the public thinking that power consumption rate will be increased after the corporation formation. But after explaining them that the corporation would not be run by private sector, the public has accepted the proposal to set up the corporation.