The Maharashtra government may have to shell out more to help the cash-strapped electricity distribution company (MahaVitaran) in view of rising arrears from agricultural consumers and also on account of supply to streetlights.
The Maharashtra government may have to shell out more to help the cash-strapped electricity distribution company (MahaVitaran) in view of rising arrears from agricultural consumers and also on account of supply to streetlights.
MahaVitaran's total arrears have increased by 23.44% to Rs 40,278 crore in 2018-19 from Rs 32,627 crore in 2017-18. Of the Rs 40,278 crore, the rise in dues from agriculture consumers alone is Rs 30,199 crore against Rs 24,699 crore including interest which is 22% increase. The arrears from local bodies for electricity supply to streetlights is Rs 4,145 crore against Rs 3,500 crore.
Finance minister Sudhir Mungantiwar in Interim Budget 2019-20 has proposed Rs 6,320 crore allocation for power subsidy and infrastructure development. But MahaVitaran has sought more support in the full budget to be presented on June 18 in the monsoon session.
MahaVitaran has a total consumer base of 2.60 crore of which 43 lakh are agriculture consumers.
MahaVitaran supplies power at the subsidised rate to agriculture consumers by charging more to industry consumers.
A MahaVitaran officer told DNA, ''Despite repeated appeals, agriculture consumers are not clearing the arrears. They are reluctant to pay even the current electricity bills citing drought and farm crisis. MahaVitaran has to continue its operation with working capital loan but that has its own limitations."
The officer said that MahaVitaran's effort to increase monthly revenue collection has paid off as it is currently worth Rs 5,500 crore. However, this won't work unless agriculture consumers clear running bills and pay arrears in a time bound manner.
MahaVitaran is worried over the mounting arrears towards supply to streetlights. ''The annual bill towards power supply to streetlight is Rs 900 crore. However, the budgetary support is a mere Rs 225 crore and the balance the government has to pay to MahaVitaran,'' the officer said.
Prayas Energy Group coordinator Shantanu Dixit suggested that MahaVitaran should aim to recover monthly bills and arrears on time.
Money Matters
- MahaVitaran’s effort to increase monthly revenue collection has paid off.
- Annual bill towards power supply to streetlight is Rs 900 crore., but budget is a mere Rs 225 crore
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