Mumbai, Nov 23: State electricity boards (SEBs) are saddled with massive outstandings from various consumers in addition to facing constraints from independent power producers (IPPs) who are insisting on a guarentee of payment for the sale of electricity. The dues accumulated with the sick industries and agriculture sector are difficult to recover, and in certain cases SEBs are forced to write-off the pending amount.

In the case of the Maharashtra State Electricity Board (MSEB), it has yet to recover around Rs 2,340 crore from its various consumers. Of these, 30 per cent is accumulated with consumers belonging to the commercial, residential and industrial catagory. The same can be recovered if the board takes strict measures, said Maharashtra State Electricity Board officials.

The balance 70 per cent of the arrears are pending with sick industries, municipalities, co-operatives and agriculture sectors. This will be difficult to recover as the board is unable to take harsh measures.

Oficials say outstanding payments not only increase the financial constraints of the board and hamper its expansion plans, but also affect its credit rating. ``While on the one hand poor recovery of payments affect escrow capacity of an electricity board, on the other, every independent power producer is insisting that payments should be made to them through the escrow account,'' they added. Of the 70 per cent of the total Rs 2,342-crore arrears due to Maharashtra State Electricity Board, over Rs 1,000 crore is pending with agricultural and sick industrial units. In spite of the heavy subsidy, the agriculture sector owes around Rs 600 crore to the board. This is over 25 per cent of the total outstandings, sources said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.