Maharashtra govt announces amnesty scheme for 32.16 lakh permanently disconnected electricity consumers

Maharashtra govt announces amnesty scheme for 32.16 lakh permanently disconnected electricity consumers

Sanjay JogUpdated: Tuesday, March 01, 2022, 11:53 PM IST
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In a major policy decision, the Maharashtra government on Tuesday announced an amnesty scheme for Mahavitaran's electricity consumers whose electricity connection has been permanently disconnected for non-payment of bills. The scheme is expected to benefit 32.16 lakh permanently disconnected (PD) consumers, excluding agriculture consumers. They owe a whopping Rs 9354 crore to Mahavitaran which is the state-run electricity distribution company with a consumer base of 3 crore.

The amnesty scheme – named after former Chief Minister Vilasrao Deshmukh – will be applicable till August, said energy minister Nitin Raut. “The 32.16 lakh PD consumers as of December 2021 will get a rebate of around Rs 1,445 crore in interest and penalty amount (delayed payment charges). It is a difficult task for Mahavitaran, which is passing through a major financial crisis, to recover pending dues from such consumers. If the arrears mount further, the Mahavitaran will have no alternative but to begin load shedding. If PD consumers join the scheme in a big way and clear their dues it will certainly help the Mahavitaran to weather the present financial stress’’ Raut said.

Under the amnesty scheme, if the PD consumer pays the electricity bill at one go, the Mahavitaran has proposed 100 per cent waiver in interest and delayed payment charges. Further, it has proposed an easy instalment payment facility for the consumers. The first instalment should be 30 per cent of the basic amount. Later on, consumers can pay the amount in 6 instalments. At the same time, it would be mandatory to pay the prescribed instalment along with the amount of the current bill. If the beneficiary consumer does not pay the remaining instalments, they will not get the benefit of waiver in interest and delayed payment charges.

Raut hopes that the implementation of the amnesty scheme will lead to the restoration of electricity connections which will help revive commercial and industrial activities generating employment.

Raut’s announcement of the amnesty scheme is aimed at mopping up funds badly needed by the Mahavitaran, whose total arrears from consumers from all categories have been over Rs 73,000 crore with the debt being over Rs 45,000 crore. Despite Raut’s repeated pleas with Chief Minister Uddhav Thackeray and Deputy Chief Minister Ajit Pawar, the urban development and rural development departments together have yet to clear their arrears of Rs 9,138 crore.

Mahavitaran’s arrears during the BJP government's tenure rose from Rs 14,154.5 crore in March 2014 to Rs 41,133 crore in March 2019. The balance grew after the Shiv Sena-led Maha Vikas Agahdi government assumed charge in November 2019.

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