Power rates will go up by Rs 1 a unit after the administration verdict to increase rates of natural gas.

Power Minister Sushil Kumar Shinde made this announcement today.

On the sidelines of an event on power management technologies, Mr. Shinde told that the power tariffs would increase in the coming days.

"We have not worked out the details, but it is likely to be about Re. 1 per unit," he said.

The cabinet on Wednesday announced a two-fold increase in the rate at which natural gas is commercialized by two state-owned upstream oil companies, ONGC and Oil India.

In this way, the cost of compressed natural gas (CNG) is likely to go up by 20 percent.

Power and fertilizer divisions and city-based gas projects will obtain gas at higher prices and are expected to forward the load to the end users.

The new rate of Rs 6,818 mscm brings it near to the Rs 7,500 mscm ($4.2 mmbtu) that the administration has fixed for natural gas from the RIL-operated Krishna-Godavari basin.

Gas was earlier supplied at Rs 3,200 mscm to such units. (With Inputs from Agencies)