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MSEDCL cuts maintenance budget by 1,000 Crore, leads to increased power failures across the state

Feb 04, 2025 06:08 AM IST

As per the regulations, MSEDCL is required to allocate at least 20% of its approved operational and maintenance budget to maintenance and repair of the electricity system when setting the electricity tariff

Maharashtra State Electricity Distribution Company Limited (MSEDCL) has reduced its maintenance and repair expenses by nearly 1,000 crore over the past two years, resulting in an increase in power failure incidents across the state. This claim is based on MSEDCL’s multi-year electricity tariff proposal recently submitted to the Maharashtra State Electricity Regulatory Commission (MSERC), detailing expenditure on maintenance and repair across the state for the years 2022-23 and 2023-24.

Furthermore, any savings from maintenance and repair costs cannot be used for any other purpose. (HT PHOTO)
Furthermore, any savings from maintenance and repair costs cannot be used for any other purpose. (HT PHOTO)

As per the regulations, MSEDCL is required to allocate at least 20% of its approved operational and maintenance budget to maintenance and repair of the electricity system when setting the electricity tariff. Furthermore, any savings from maintenance and repair costs cannot be used for any other purpose.

However, MSEDCL’s proposal reveals that the actual spending on maintenance and repair was only 13.6% in 2022-23 and 15.5% in 2023-24, both falling short of the 20% requirement. This means that MSEDCL spent nearly 1,000 crore less on maintenance and repair over these two years which is reportedly contributing to an increase in power outages across the state.

Rise in outages across Maha

According to data from the MSEDCL website, the reliability index shows a worrying trend. In August 2024, there were 71,885 power outages, totalling 47,138 hours without electricity. In September 2024, the outages increased to 96,528, resulting in 57,392 hours of darkness. By October 2024, the outages rose further to 107,088, causing 67,815 hours of power loss.

Vivek Velankar, president of the Pune-based non-government organisation (NGO) Sajag Nagarik Manch, alleged that MSEDCL does not publish monthly power outage data as required. Despite frequent complaints, the utility releases outage data for two to three months at a time, he said. Attributing the consistent rise in power outages over the past four months to MSEDCL’s failure to properly invest in maintenance despite collecting funds from consumers for that very purpose, Velankar noted the frustration of consumers who continue to face power cuts despite paying their bills and demanded action.

Rajendra Pawar, chief engineer of the Pune Circle, said, “There are two types of maintenance: preventive and breakdown. We primarily focus on preventive maintenance, which is why the expenditure on breakdown maintenance is lower. We regularly carry out repairs and maintenance. A major cause of breakdowns is damage to underground cables due to development work. During the monsoon season, overhead wires get damaged, leading to power failures for consumers.”

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