Thiruvananthapuram: With Kerala's power utility continuing to make losses and the water level falling in the reservoirs of hydroelectric projects, the state government is likely to hike the tariff again.

The poor monsoon has pulled alarm bells in the state that is predominantly dependent on hydroelectric power. Authorities now say the available water is enough to generate electricity just for one month.

The Kerala State Electricity Board (KSEB) clocks up losses of Rs 1.2 billion every month. Reports indicate the board's debts have crossed the Rs 44-billion mark, and other liabilities are around Rs 20 billion.

The United Democratic Front government has no other option but to hike the power tariff for the second time since it assumed office in May 2001. The state currently levies among the lowest electricity tariffs in India.

The state cabinet on 2 August 2002 discussed the issue and deferred a decision on a tariff increase for the next meeting scheduled on 7 August.

''We have no other option… we require another Rs 820 million every month if we are going to buy thermal power to maintain the status quo as per the state's current monthly requirement of power is concerned,'' says Chief Minister A K Antony.

Hydroelectric power caters to almost 50 per cent of Kerala's needs. Of the total 12,510 megawatts (MW) of energy available in the state, 6,191 MW is hydroelectric power.

''We once failed to take up the building of a nuclear reactor for various reasons, and today we are precariously placed. The main reason why we are in this position is because of no long-term planning,'' admits Antony.

''To bring about some parity, we have decided to take up the Kannur Power Project, and the cabinet is studying it again. We have also commenced talks on a large-scale revamp of the KSEB. We cannot afford to lose Rs 1.2 billion every month,'' he adds.

The Kannur project was in the limelight when the previous E K Nayanar government had rejected it. Not a single additional megawatt of electricity has been generated so far in the last one year. The Nayanar government had added close to 1,000 MW capacity to the state's power output during its 1996-2001 term.