Munde, who is also the state energy minister, said he had discussed these options with chief minister Manohar Joshi on Saturday and Joshi would find the solution. "He (read Joshi) is my captain and Matushri (read Thackeray) is my coach," he added. Munde said, "The provision of free electricity is possible if the government provides budgetary allocation of Rs 650 crore. MSEB will thereafter will be in a position to maintain 4.5 per cent rate of return."

Munde said an option of seeking loanfrom a state government undertaking for this year to the MSEB for this purpose can also be considered. He recalled that the Mumbai Metropolitan Regional Development Authority has provided Rs 300 crore towards the share capital of the much-debated Shavshahi Punavarsan Prakalpa Ltd, a state government-owned company to provide free houses to city slumdwellers. He added that next year such a loan will not be required if the government makes a necessary budgetary allocation to MSEB.

Munde said there has been substantial decline in the budgetary allocation for the power sector and informed that it has been reduced from Rs 1,400 crore in 1994-95 to Rs 450 crore in 1997-98 and to Rs 200 crore in 1998-99. He added that the state government has stopped making budgetary support for power generation as it was done by MSEB from its kitty.

Munde, who returned on Wednesday from his 20-day foreign trip, said that a letter of intent has been given to the California-based Enron Wind International Holding Corp to conduct afeasibility study for the setting up of wind power projects in the state. He informed that the company has expressed its desire to make an investment of Rs 250 crore in wind power generation during the first phase. He added that Thoseghar and Wankuswade from Satara district and Sautala from Beed district and some sites from Sindhudurg districts with a good wind velocity have been identified by the Maharashtra Energy Development Agency for this purpose. The generation of about 100 mw by wind power would be possible.

Munde said that MSEB has signed a memorandum of understanding with Metropolis Gas Company Private Ltd, a subsidiary of Enron, for the supply of gas to the gas-based thermal power station at Uran with a capacity of 900 mw. He informed that in view of lack of availability of sufficient gas from Bombay High, the Uran power station could not generate power of more than 500 mw. He said another memorandum of understanding was signed between MSEB and the US-based Eastern Energy Ltd (EEL), a powerdeveloper for the modernisation of existing thermal power stations at Koradi (120 mw) and Nashik (140 mw). The EEL will bring in Babcock & Wilcox boilers. The company will make a pre-feasibility study within a month and after receiving its report, MSEB will decide about taking up a detailed feasibility study at its cost to obtain a detailed report from the company. Munde said that once the technical-economic feasibility study was established after the detailed study, the project refurbishment/ modernisation will be taken up on pilot basis as demonstration projects. EEL will arrange to finance the project through long-term loan or lease arrangements to MSEB.