‘Rs 19,672 cr spent, no power generated’ | mumbai | Hindustan Times
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‘Rs 19,672 cr spent, no power generated’

mumbai Updated: May 01, 2013 01:28 IST
HT Correspondent

After irrigation, another department held by Nationalist Congress Party may become controversial over its spending and the outcome.

Leader of opposition in the legislative council Vinod Tawde alleged that although Rs19,672 crore had been spent on power generation in the past nine years, not a single megawatt additional power was generated.

However, Maharashtra State Electricity Distribution Corporation Limited (Mahavitaran) and Maharashtra State Power Generation Company Limited (Mahagenco) dismissed the allegations saying facts had been distorted.

Tawde claimed on Tuesday that the state government spent Rs19,672 crore from 2004 to 2012 on power generation projects.

“The power generation company set up 13 new generation units at its six generation plants in these five years. The capacity of generation was expected to rise by 5730 MW after installing these units. MSEDCL was expecting generation to go up by 2500 MW, but even that too has not achieved,” he said.

“The government spent Rs4,500 crore last year for the purchase of the power from private generators. The difference between the rates of power generated by the government company and purchased from the open market was nearly Rs1.50 per unit. This resulted in an additional burden of Rs1,000 crore which was recovered from the consumers,” he said.

All the three power companies of the state government are reeling under corruption and the rise in the tariff on 12 occasions in the past 36 months is just a reflection of that, he said. Tawde demanded a thorough inquiry into the irregularities.He said electricity tariff in Maharashtra was the highest in the country.

Mahavitaran and Mahagenco said: “Except for the areas with the higher leakages in distribution, there is no load shedding in Maharashtra and we are generating sufficient power. The allegations levelled by Tawde on the power purchased at exorbitant rate are false and misleading.”