Vidarbha Industries Seek AAP Help to Expose Power Scams | SupportBiz


Vidarbha Industries Seek AAP Help to Expose Power Scams

Raj Narayan's picture
Tags: Power tariff
Vidarbha Industries Seek AAP Help to Expose Power Scams
Industry bodies join hands to protest the high cost of power in the region and seek probe into the functioning of power utilities in Maharashtra.

Nagpur, January 07: Industry associations across the Vidarbha region have sought help from the Aam Aadmi Party (AAP) to bring to light the mismanagement at the Maharashtra State Electricity Distribution Company (MSEDCL) and MahaGenco in the wake of consistent problems faced by the MSMEs due to power outages. 

The associations claim that despite repeated requests placed before state industries minister Narayan Rane and the BJP, things have not moved an inch. Demands for subsidizing power to the MSMEs have also been put on hold despite Rane's recommendation as the administration believes that this requires political consensus. 

The Vidarbha Industries Association officials point out that the power tariff could be reduced by at least 25 percent if the companies were managed properly and transmission and distribution losses were curtailed. 

They point out that the power tariff in the region had ranged up to Rs.4 per unit till about four years ago and was considered the cheapest in the country. However, this has been doubled to Rs.8 and Rs.9 now which makes it amongst the costliest in India, thus rendering many of the small units unviable. 

The association claimed that MahaGenco insisted on producing costly power instead of purchasing it from private players who were able to generate it at much cheaper costs. Against the average cost of Rs. 3.65 a unit, the power company was supplying at Rs.4.11 a unit while private players were generating it at Rs.3.5 a unit, they said.