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Home News Power Sector News Maharashtra to face load shedding for 11 hrs

Maharashtra to face load shedding for 11 hrs

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MSEDCLMaharashtra will experience daily load shedding of 11 hours in rural and 6 hours in urban areas from next 10-10-2011. Though Mumbai will not face any load shedding right away, areas like Navi Mumbai, Thane and other industrial areas in the state will see major power cuts in the festive season.

Because of the Telangana agitation, the coal supply to Maharashtra power plant has been affected. Flood in Orissa has further complicated the situation. Maharashtra State Electricity Distribution Company (MSEDCL) has informed the state's power minister that it does not have fund to buy from other states too.

Sources in MSEDC said due to rising demand for power in agricultural activities in the last few days, the total demand for power in the state has reached 16,500 MW while the available power in only about 10,500MW.

Earlier, the distributor had sought permission from Maharashtra Electricity Regulatory Commission (MERC) to hike power tariff in order to bridge deficit of Rs 5,097 crore. However, the regulator refused to hike power tariffs.

MSEDC is caught in this grave financial situation because MERC has not allowed it the reimbursement of actual expenses incurred during the last 2-3 years. The distributor is finding it difficult to meet the expenses on power purchase and its employee cost. MSEDC is required to take loans from financial institutions for running its day to day business and it has already crossed the available loan limits.

The MERC spokesman confirmed that the commission declined to entertain a petition filed by the MSEDC seeking interim relief whereby MSEDC planned to recover 'immediately' Rs 4,847 crore by way of a uniform additional charge at 61 paise per unit with effect from September.

MERC chairman VPRaja took the decision since public hearings on the petitions of MSEDC and two other utilities are scheduled to begin from 7 October 2011 at six revenue headquarters across Maharashtra. The public hearings will conclude on 25 October 2011.

"It is an accepted practice that no ordinance is issued by the government on the eve of a legislature session. The same consideration suggests that this petition for interim relief should not be taken up by MERC in view of the public hearings to be held in the near future," Raja said.

Source - Economic Times


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