Mahagenco director asked to go on leave over rise in tariffs | mumbai | Hindustan Times
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Mahagenco director asked to go on leave over rise in tariffs

The sharp rise in power tariffs and inefficiency in power generation in the state has prompted the state government to crack the whip on state power generation company Mahagenco.

mumbai Updated: Aug 29, 2012 01:56 IST
Dharmendra Jore

The sharp rise in power tariffs and inefficiency in power generation in the state has prompted the state government to crack the whip on state power generation company Mahagenco.

Against this background, Manik Wagmode, director, Mahagenco was asked to go on compulsory leave. Chief minister Prithviraj Chavan has also asked the energy department to explain the steep hike in power tariff for all companies across the state in the cabinet meeting on Wednesday.

Waghmode’s leave is being viewed as punishment for not maximising generation in the last week, causing prolonged power cuts in across the state, including in zero-power areas.

To mitigate the deficit, state distribution company, Mahavitaran, had to buy expensive power from other sources forcing consumers to pay higher monthly bills. Several ministers also complained to Chavan about the grim power situation last week.

Deputy chief minister, Ajit Pawar, who also heads the energy department, initiated action against Waghmode, who heads operations at all thermal and hydroelectricity stations.

Waghmode went on leave late last week and is unlikely to retain the position, said a senior energy department official on the condition of anonymity. Mahagenco managing director, Ashish Sharma, did not deny the development. The state regulator on Monday allowed distribution companies across the state to recover 10% extra in fuel adjustment cost.