Mumbai, Oct 4: The Maharashtra government on Wednesday threatened to revoke the licence of BSES if it fails to pay standby charges of Rs 180 crore to Tata Electric Companies (TEC) within a week. The government, which failed to strike a compromise between BSES and TEC on this long pending issue, has asked both parties to approach the Maharashtra Electricity Regulatory Commission (MERC) to resolve the matter. Energy minister Dr Padmasinh Patil told reporters that the government has powers to intervene and revoke the licence issued to BSES in 1986 for power distribution in Mumbai suburbs. "We hope BSES will make the necessary payment within a week or else its licence get revoked thereafter," he said.
Dr Patil, who held a lengthy meeting untill Tuesday midnight, said that BSES was entitled to pay the standby charges to TEC as per the government order issued on March 22 this year. He said that TEC has already paid its share of Rs 161 crore of the total Rs 363 crore worth standby charges to MSEB.
State energy secretary Asoke Basak hinted that the ailing Maharashtra State Electricity Board (MSEB) may take over the power supply in Mumbai suburbs if BSES' licence gets revoked after the next seven days. He, however, clarified that it would be considered only after a week.
BSES chairman and managing director RV Shahi told The Financial Express that BSES has been paying Rs 151 crore annually as standby charges. However, there was a gap of Rs 27 crore to be paid annually which the BSES has not paid.
Mr Shahi said that BSES did not make the annual payment of Rs 27 crore to TEC as the latter did not implement agreement reached with it. As per that agreement, TEC would not try to tap BSES consumers for power supply neither it would create duplicate infrastructure. He added that this agreement had a consent of the state government. Mr Shahi said that standby charges for MSEB to TEC existed even before BSES' Dahanu thermal plant was commissioned.
These standby charges were borne by BSES as the tariff structure comprises demand charges, energy charges and standby charges.
On the state government's directive to approach MERC, Mr Shahi said that his company would do so as it would be the right forum for settlement. "As standby charge is an integral part of tariff, MERC would be the only authority to give its ruling," he opined.
TEC managing director Mr Adi Engineer said that TEC has been paying its monthly share towards standby charges to MSEB regularly.
"It is high time that the BSES honour the state government order in this regard and pay up its due share immediately," he added.
Meanwhile, MSEB on Wednesday signed a memorandum of understanding (MoU) with the UK-based Dirk European Holdings Ltd for the setting up of coal ash disposal plant for the manufacturing of cement replacing product Pozzocrete near Nashik thermal power project. The company, alongwith an Indian partner, Mr PRS Kurup would invest Rs 14 crore for this plant which would be commissioned within a year. Dirk India, the subsidiary of Dirk European Holdings, would utilise 1,000 tonnes of fly ash daily for a year and later use in all 3,000 tonnes daily.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.