E-Paper
Six firms to bid for power franchise in Ahmednagar
Six power entities are interested in distributing power in the areas serviced by a controversial Mula Pravara Electric Co-operative Society (MPECS) in Ahmednagar district.
Six power entities are interested in distributing power in the areas serviced by a controversial Mula Pravara Electric Co-operative Society (MPECS) in Ahmednagar district.
State power major Mahavitaran, the four private players Tata Power Company, Indiabulls Power Ltd, A2Z Maintenance & Engineering Services Ltd and GTL Ltd have bid for the licence. MPECS has also applied for the permit.
In August, the Maharashtra Electricity Regulatory Commission (MERC) invited bids because the Mula Pravara society is engaged in a financial feud with Mahavitaran. MPECS’s licence will expire in January 2011.
Mahavitaran has accused the society of not paying dues of Rs 2,000 crore, which have been accumulating since 1971.
The society that was promoted in 1969 by senior Congress leader Balasaheb Vikhe-Patil has cited poor financial position for default. It distributes power in five tehsils (183 villages, 1.37 lakh consumers) — mostly to un-metered agriculture sectors at cheaper rates and also to domestic consumers.
This year, MERC had asked the society to pay in advance the amount (about Rs 20 crore) to Mahavitaran through letter of credit from April 2010. The society buys a monthly supply of Rs 18 to 20 crore from Mahavitaran but has refused to pay at MERC-approved rates. It has been paying just Rs two-three crore every month.
Following Mahavitaran’s consistent appeals, the MERC has initiated inquiry into MPESC’s accounts and infrastructure by the Administrative Staff College of India (ASCI), Hyderabad.
Sources in MERC said that the bid would be finalised soon.
