Mantralaya sources told The Financial Express that MSEB was expected to file a review petition by July 4 as per the regulatory commission order slashing the former's plea for tariff hike from 19 per cent to a moderate 6 per cent for 2000-01. The tariff hike has been made effective from May 5 this year.

"However, since both state energy minister Padmasinh Patil and MSEB chairman Yashwant Bhave are currently abroad, a time extension has been sought," a senior official said. MSEB has already decided to file a review petition at the MSERC instead of challenging the latter's order at the high court. The increase in tariff is in the range of 40 per cent to 80 per cent for the low tension agricultural consumers.

For load upto five horse power (HP), MSERC had directed Rs 900 per HP annually, Rs 1,104 per HP per year for load over five HP but upto 7.5 HP, Rs 1,404 per HP per year for load more than 7.5 HP but upto 10 HP and Rs 1,404 for load in excess of 10 HP for metered power supply.

MSERC has also directed Rs 10 and Rs 1.10 paise per unit per HP per month fixed charge for metered tariff for all slabs of HP. MSEB sources said that there has been enormous amount of resistance from the agricultural consumers in terms of the "acceptability of the new tariff."

MSEB's field staff has faced stiff resistance from the agricultural consumers, which has resulted in social tension. Moreover, MSEB believes that this resistance could result in acute problems in terms of the implementation of the new tariff order during the year thus severely affecting its cash flow position."

According to MSEB, it is committed to rationalisation of tariffs for all consumer categories including agricultural sector. However, "for prudent commercial considerations and practical implementation issues, MSEB would like to follow a principle of gradualism to avoid any price shocks in rationalising the tariffs for agricultural consumers, while simultaneously improving the quality of supply," the sources added.