M'rashtra industries to buy extra captive power

Conceding to the government's request in view of power shortage in Maharashtra, the industries in the state have agreed to procure 400 MW extra power from captive sources.

The representatives of several industrial bodies conveyed the decision to the government at a meeting with energy and industry ministers on Wednesday.

This means some relief for domestic consumers because industries won't use 400 MW power from the common supply. Instead, they will buy power from captive sources and in return enjoy some government subsidy on billing for costly purchase.

The state has total captive generation capacity of 800 MW per day. Big industries and private power producers own such units and they run them only during emergency.

Agitated over the recent government missive that they would have extra day of staggered power cuts, the industries also want some monitory reprieve from the power distribution company.

It asked for abolition for fixed charges and reduction of surcharge during days of staggered power cuts.

A high-power secretaries committee would finalise modalities in next three days, said AB Pandey, the managing director of Maharashtra State Electricity Distribution Company Ltd (MSEDCL).

They plan a transparent purchase scheme, most possibly through inviting tenders from captive power producers. The industry representatives asked for continuous power cuts for two days.

Effectively, a day's staggered power cut for industry lasts for 16 hours. "We want a continuous cut of 32 hours because it would help us plan production schedules," said president of MIDC Industrial Association Sunil Shirsikar.

First Published: Feb 15, 2007 00:42 IST