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MSEB arrears post zero growth

BS Corporate Bureau

Maharashtra State Electricity Board's arrears have shown a zero growth in 2000-01 for the first time in two years. MSEB has made it clear that the zero growth was achieved after taking into account the compensation from the state government for restrictions on agriculture and powerloom disconnections.

In 1998-99 and 1999-2000, the board's arrears grew by 44 per cent.

This was disclosed by MSEB chairman Vinay Bansal, according to a press release issued by the board. Bansal said that there was criticism that though the board had full powers it was not recovering arrears from its residential, commercial and industrial consumers.

This criticism has now come to an end. In 2000-01, MSEB reversed the growth rate of arrears of these consumers from 59 per cent to minus 13 per cent.

These results were due to the implementation of policies of daily disconnection report and introduction of energy audit. The board has been disconnecting 20,000 defaulters every day. In the last six months the arrears from these consumers were reduced by Rs 2.25 billion.

Arrears of local bodies, however, continued to grow, as the board could not disconnect supply of drinking water schemes and streetlights for public convenience. The board has, therefore, requested the government to divert their grants to clear the arrears, the release added.

Like other state electricity boards, MSEB follows a policy of cross-subsidising agriculture and residential consumers by levying a higher tariff on industrial consumers. This has resulted in a financial mess in the state electricity board. Further, the woes of electricity boards are compounded by the fact they are unable to disconnect agricultural consumers due to political interference.

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