Maharashtra Electricity Regulatory Commission has rejected the application of the Mula Pravara Electric Co-Operative Society Ltd for electricity distribution licence and decided to grant it to the Maharashtra Electricity Distribution Company Limited.
In a major development, the Maharashtra Electricity Regulatory Commission (Merc) has rejected the application of the Mula Pravara Electric Co-Operative Society Ltd (MPECS) for electricity distribution licence and decided to grant it to the Maharashtra Electricity Distribution Company Limited (MSEDCL), effective from February 1.
The order is significant as MPECS is dominated by senior Congress leader, Balasaheb Vikhe Patil, whose son, Radhakrishna, is a minister in the state cabinet, while the MSEDCL is effectively controlled by Nationalist Congress Party (NCP) leader, Ajit Pawar, as state power minister.
There was a tussle between two leaders to control the local power utility. MPECS is one of the very few cooperative societies in the country engaged in power distribution. It buys power from MSEDCL and distributes it in its area of operation.
The MPECS distributes electricity in 183 villages spread over 1,880 square km in the five talukas of Shrirampur, Rahuri, Nevasa, Sangamner and Rahata in Ahmednagar district. However, it owes more than Rs2,200 crore to the MSEDCL.
Merc chairman VP Raja and member Vijay Sonavane passed the order on Thursday. MPECS was first provided with a 20-year licence under the Indian Electricity Act, 1910, by the state government on January 28, 1971, which was extended to 20 years.
Merc said in its order that even though MPECS had sufficient experience and technical capabilities for grant of distribution licence, it did not have financial credibility and capability to procure power for supply to its consumers, “which will not enable the satisfactory fulfilment of the function of supply of electricity to its consumers. In the circumstances, the commission rejects the distribution licence application of MPECS.”
MPECS had submitted its application for fresh distribution licence along with MSEDCL, A2Z Maintenance and Engineering Services Ltd, Tata Power Company Ltd, GTL Ltd and Indiabulls Power Ltd. Since MSEDCL was able to satisfactorily meet all the criteria, Merc granted the distribution licence in the area to MSEDCL.
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