The Maha Vikas Aghadi government like the previous BJP led government has resorted to populism sacrificing the financial prudence by announcing the stay on the disconnection of power supply amid rising arrears and restoration of electricity to disconnected agriculture consumers despite the huge financial crisis. The state-run Maharashtra State Electricity Distribution Company (MahaVitaran) with a consumer base of 3 crores is bleeding as its arrears, debt and liabilities are increasing against its revenue realization.
Of the total arrears of a record Rs 64,093 crore as of December 2921, the agricultural consumers owe as high as Rs 40,247 crore. Despite repeated appeals for the payment by providing easy instalments, the MahaVitaran has received a lukewarm response from the agricultural consumers. The ruling and opposition parties are unanimous against the disconnection of power supply to agricultural consumers as they do not want to hurt their respective vote banks.
According to MahaVitaran, the arrears from agricultural consumers were Rs 40,291 crore in March 2020 (against total arrears of Rs 59,833 crore), Rs 44,920 crore in December 20202 (Rs 71,480 crore), Rs 36,884 crore in March 2021 (Rs 60,821 crore), Rs 41,164 crore in October 2021 (Rs 65,397 crore) and Rs 40,247 crore in December 2021 (Rs 64,093 crore).
The banks have stopped entertaining MahaVitaran’s loan applications and now it faces a huge challenge to repay a loan of Rs 23,000 crore by March 2023 which averages out to be Rs 1538 crore inclusive of interest per month. MahaVitaran won’t be in a position to raise borrowings if the arrears will continue to surge against the revenue realization.
Energy Minister Nitin Raut said that MahaVitaran has established a technical committee to explore the option of payment of arrears by agricultural consumers in 12 instalments instead of the present six instalments. He added that the committee has been asked to give its report in a month.
However, energy expert Ashok Pendse said electricity to agriculture is not measured and is manipulated. Because of manipulated figures, the MahaVitaran is in a position to show reduced losses and get higher subsidies.
‘’MahaVitaran has inflated the horsepower of the agricultural pumps and that is the bone of contention from the farmers’ side. Year after year the arrears are waived and irrespective of the party in power no disconnection is made on account of arrears. In the last 20years time, we have moved from the Agri arrears of Rs 1,800 crore to Rs 40,000 crore plus. Unless and until the government gives the entire money to MahaVitaran its survival is at stake,’’ he noted.
