scorecardresearch
Thursday, March 28, 2024
Support Our Journalism
HomeIndiaGovernanceRs 5,000 crore: That’s how much Maharashtra civic bodies haven’t paid for...

Rs 5,000 crore: That’s how much Maharashtra civic bodies haven’t paid for electricity used

Follow Us :
Text Size:

Mounting arrears have been a major concern for MSEDCL, which has tried several schemes in the past to help consumers reduce their dues. 

Mumbai: Crumbling under unpaid bills, Maharashtra’s state power discom doesn’t need to look too far to find one of its biggest defaulters.

As much as Rs 5,000 crore of the Maharashtra State Electricity Distribution Company Limited’s (MSEDCL’s) dues of Rs 39,000 crore – or more than 10 per cent – is owed by its sister state government institutions, the civic agencies.

For years, municipal corporations, municipal councils, nagar panchayats, Zilla Parishads, and gram panchayats across the state have been defaulting on charges they are required to pay to the MSEDCL for supplying power to operate streetlights and public water projects.

According to MSEDCL data, the institutions together owed Rs 4,991.8 crore to the power discom as of February this year. Of this, Rs 3,443.32 crore was the bill pending for street lights and Rs 1548.5 crore for public water works, including the accumulated interest.

These institutions form the third-largest category among the MSEDCL’s various defaulters, the largest being farmers.

State government to help reduce the dues 

To give some relief to the power distribution company, the Maharashtra government has decided to make an exception and help clear at least 50 per cent of the pending principal amount until 31 March, 2018, through funds received from the Centre under the 14th Finance Commission.

An MSEDCL official confirmed as much, adding, “We will have to follow up with the concerned institutions and recover the remaining principal and interest amounts from them.”

The government has advised the power discom to offer the civic agencies convenient slabs to clear the amount, the official said.

According to the proposal, cleared by the state cabinet in March, the state urban development department will bear the tab for the municipal corporations, councils and nagar panchayats, while the rural development department will do so for the zilla parishads and gram panchayats.

MSEDCL’s ballooning arrears 

Mounting arrears have been a major concern for the MSEDCL, which has tried several schemes in the past to help consumers reduce their dues.

The MSEDCL’s dues had ballooned to Rs 39,083.7 crore by February 2018. Farmers together form the biggest set of defaulters, with Rs 22,891.2 crore in dues as of February 2018, while another Rs 7,538.6 crore is owed by consumers whose connections have been permanently disconnected.

Residential customers owe the MSEDCL Rs 1,329.2 crore, while commercial entities’ dues total Rs 471.3 crore.

The MSEDCL, which has 1.93 crore consumers across the state, has been in the red for the last several years, largely hit by the accumulating dues from its consumers. The arrears stood at Rs 26,000 crore in March 2016, and Rs 21,000 crore at the end of financial year 2014-15.

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular