MSEB sources told The Financial Express that the board has provided electric connections to water supply schemes run by 10 municipal corporations, 22 A-class, 48 B-class and 178 class-C municipal councils in the state. The civic bodies with substantial arrears are Aurangabad (Rs 50.26 crore), Ahmednagar (Rs 41.23 crore), Nanded (Rs 13.75 crore), Dhule (Rs 8.62 crore), Parbhani (Rs 8.27 crore), Latur (Rs 7.70 crore), Amalner (Rs 5.79 crore), Hingoli (Rs 4.61 crore), Akola (Rs 6 crore), Manmad (Rs 3.65 crore) and Sinner (Rs 1.22 crore). The dues by these 11 bodies amount to Rs 151 crore of the total Rs 228 crore.

MSEB has expressed serious concern over non-payment despite constant reminders. It has admitted that "strict compliance of disconnection is not resorted to manya time due to anticipated public agitation and disturbance in law and order".

Even if token disconnection is done, supply needs to be restored quickly as water is an essential commodity, a senior MSEB official said. He added that some municipalities have been paying current bills either partly or fully.

In August 1997, a scheme was introduced to recover arrears from local bodies by extending various concessions. However, the response was poor.

"We have taken up the issue with the state government at various levels emphasising the need for recovery and have suggested adjustment of arrears through grants given to such local bodies," a board official said.

The Comptroller and Auditor General in its recent report has castigated the MSEB for non-recovery of these dues. "The directives issued by MSEB's head office to field offices to mount pressure on local bodies by effecting token disconnection of power supply of a few water works, or staggered disconnection of power supply were not implemented by thefield offices," the report states.

On non-recovery of over Rs 600 crore from agricultural consumers, a board official said that the figure was mounting by the day and recovery through use of force is difficult.

MSEB introduced a scheme last year for the speedy recovery of these arrears, but there were very few takers. As per the scheme, if 50 per cent of the total amount of the energy bill for September 1996 was paid by an agricultural consumer on or before March 31, 1997, payment of the balance as on that date was to be withdrawn from the books.

The scheme was initially confined to individual agriculture consumers but was extended to cover irrigation scheme consumers. The scheme period was also extended to June 30, 1997. About 3.75 lakh consumers availed themselves of the scheme and paid up Rs 83.31 crore. Simultaneously, an equivalent amount was withdrawn from MSEB's accounts.

A similar scheme was reintroduced this year. Here, if an agriculture consumer paid on or before June 30, 1998, at least 50per cent of the arrears as on September 1997, then the payment of balance 50 per cent was to be written off. This has not been successful.

To tide over the problem of revenue loss, MSEB has appealed to the state government that its loan be converted to equity. The board has to pay about Rs 500 crore annually to the state as interest and has demanded that the loss of revenue due to various concessions to agriculture be set off against this interest liability.