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Wednesday, December 9, 1998

MSEB, industry spar over power-tariff hike 

Vandana Saxena  
Mumbai, Dec 8: The Maharashtra State Electricity Board (MSEB) and local industrial units are at loggerheads over the power-tariff issue. While industrial organisations are demanding withdrawal of the tariff hike, the MSEB believes that under no circumstances it can concede to such a demand.

"The tariff increase, which came into effect from September this year, was widely debated at the government level and there is no possibility for any withdrawal," said MSEB officials.

Meanwhile, the Thana Belapur Industries Association has filed a case in the Mumbai high court against the MSEB's move. The case will come for hearing on December 14. A similar case has also been filed in the Aurangabad high court.

The changes in the present tariff structure, however, will depend on court orders, the officials said. As industrial units are already paying electricity bills under the new tariff structure, they are demanding that the additional amount paid be credited to their account. Industrial associations are arguingthat the they should not pay the price for the board's inefficiency.

They believe that the board's financial constraints are primarily because of its own mismanagement. "MSEB should first collect arrears of Rs 3,000 crore from its various consumers and stop writing off such dues," said a representative.

Various industrial organisations have already formed an apex co-ordination committee to jointly fight the issue. Among the organisations which are part of the committee include, the Indian Merchants' Chamber, the Maharashtra Chamber of Commerce & Industry, All India Association of Industries, Marathwada Chamber of Commerce and Industries, Thana Belapur Industries Association, Thana Small Scale Industries Association, Sholapur Chamber of Commerce, indusrial manufacturers' associations from Mahad, Tarapur, Marathwada, Vidharbha, Patalganga and Rasayani, Maharashtra.

The organisation believes that the electricity board should immediately implement the Rajadhaksya committee report. "It should also reducetransmission and distribution losses which, at present, are around 20 per cent," the panel feels. According to the committee, with the industry already facing recession it cannot be burdened with an increase in tariff.

The committee is also demanding that the decision regarding free electricity to a section of society be withdrawn as industrial units cannot afford any more cross-subsidies.

Any revision should be planned cautiously as tariff also gets affected if there is any upward movement in fuel price, industry analysts said, adding that the recent increase in price of naphtha will also affect tariff.

Power tariff which comprises two segments, fix and variable costs, has a provision to pass down any increase in the fuel cost to consumers.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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