Power crisis: Raut voices resentment against state over dues

While Maharashtra is staring at a power crisis, politics on the issue seemed to have worsened with energy minister Nitin Raut voicing his resentment over pending electricity dues with state depts

Mumbai While Maharashtra is staring at a power crisis, politics on the issue seemed to have worsened with energy minister Nitin Raut voicing his resentment over pending electricity dues with state government departments.

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has ₹64,093 crore worth arrears from all categories of consumers (HT File Photo)

Bharatiya Janata Party (BJP) leader Chandrashekhar Bawankule, who is Raut’s predecessor in the energy department, alleged that the Nationalist Congress Party (NCP) was trying to deliberately starve the department of funds so that the power sector plunges into a crisis, thus discrediting the Congress which holds the portfolio.

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has ₹64,093 crore worth arrears from all categories of consumers like residential ( ₹2,304 crore), commercial ( ₹492 crore), industrial ( ₹2,845 crore) and agricultural ( ₹40,247 crore). This also includes ₹9,176 crore that are due from government departments like rural development, urban development and government offices.

“The rural development department has not paid us,” said Raut. “Some officials from the state government want us to waive off penal interest and late payment fees on bills due from the rural development and urban development departments. But if this is done for the state government, how can we continue to recover this from the common consumer?” asked Raut, while calling on the government to reconsider this position and pay them this money.

The growth in electricity demand due to the soaring heat, rise in consumption by industrial and agricultural consumers and the nationwide coal crisis, which has affected inventories at the Maharashtra State Power Generation Company Limited’s (MahaGenco) thermal power stations, has led to the MSEDCL facing a gap of around 2,500 MW to 3,000 MW. The power distribution utility has started load-shedding or power cuts across the state.

In the past, Raut has pointed to how the power sector utilities are facing a cash crunch, and how cash is needed to purchase power from the market to tide over the supply crunch.

“In Maharashtra, the finance department has not ensured a cash flow for the energy department over the past two years. The cash flow has been affected due to the fight between two ministers,” said Bavankule, while attacking Raut and deputy chief minister Ajit Pawar, who is also the finance minister. He blamed the state government for failing to arrange the evacuation of coal due to lack of funds.

“This is the failure of the state government…the electricity utility has pending dues from the state government’s departments,” he added, seeking that the money be paid immediately. “It is because of their lack of planning that the state is plunging into darkness,” claimed Bawankule.

“The money to be paid to the power sector utilities is being purposely delayed. This is meant to disrupt the cash flow, so that when the state is in darkness, the blame is pinned on Congress. It is their internal politics which has led to this crisis,” he charged.

However, Raut blamed the union government for not giving adequate coal stocks to the state.

NCP spokesperson Mahesh Tapase denied Bawankule’s claims. “These are baseless allegations. He is not aware that the problem of load shedding is prevalent across India, including Gujarat,” he said, adding that the remark was a futile attempt at trying to create a rift in the Maharashtra Vikas Aghadi (MVA).