Published On : Fri, Jun 6th, 2014

MIHAN-SEZ suffering because of blunders by MSEDCL, says VIA’s representative Goenka

Allowing open access to industries is the best solution to power supply problem in MIHAN but MSEDCL  is giving misguiding statements about loss to MSEDCL due to reduction in cross subsidy revenue in case open access allowed, says R B Goenka, the Consumer Representative of Vidarbha Industrial Association.


Nagpur News:  “Open access is the best solution to the power supply problem the MIHAN-SEZ has been facing since its inception. The MSEDCL (Maharashtra State Electricity Distribution Company Ltd) could be blamed for this situation as it is violating the legal provisions which facilitated open access to the industries” says Consumer Representative of Vidarbha Industrial Association R. B. Goenka. Goenka also added that the power supplier must amend its ways and strengthen the engine of growth (MIHAN) and the region as well. Talking to Nagpur Today, Goenka dwelt upon the power tariff, mismanagement of power sector in Maharashtra and the solutions for the power supply problem the MIHAN-SEZ is facing since long. Following are the excerpts.

Open access will lead to profit:

profit percentage due to open access

Goenka confidently said that he has done the research and according to his study, he has found that there is no loss to MSEDCL in allowing open access to the consumers. On the contrary, the MSEDCL will reap profit in various amounts if industries are given option of open access.  There will be profit of Rs 130 crore if sales is reduced by 5%, Rs 166 crore if sales is reduced by 10%, Rs 257 crore if sales is reduced by 15% and Rs 949 crore in case sales is reduced by 20% of HT sales if consumers opt open access.  The more the consumers opt open access the more will be saving, asserted.


MERC should frame the long pending open access regulations:


“Industries cannot even purchase power from power exchanges through open access since the MERC (Maharashtra Electricity Regulatory Commission) has not framed the long pending open access regulations. Moreover, MSEDCL is not providing the necessary NOCs and applications of industries are being kept pending. Some of the industries applied for open access but since regulations are not framed by the MERC, the MSEDCL is not providing NOCs for purchase of power through power exchanges,” lamented Goenka.


Why the electricity tariff is highest in Maharashtra!

electricity tarrifelectricity tarrifelectricitytarrifTalking about the power tariffs, Goenka pointed out that electricity tariff in Maharashtra is highest in India which is subsequently becoming unsustainable to the consumers and industries particularly to those industries that are now either closing down or reducing production. According to Goenka, the reasons for high tariff in Maharashtra could be attributed to purchase of high cost power from Mahagenco. MSEDCL is purchasing high cost power from Mahagenco and consumers are paying for their inefficiency.  This power is not purchased through competitive bidding as is required under the provisions of the Act . It is a statutory obligation on all distribution companies in India to follow “ Merit Order Dispatch Principles” while purchasing power in the interest of distribution companies and consumers. “MSEDCL is purchasing power from Mahagenco on the average rate of supply by clubbing all their power stations and then by considering variable cost of power only leaving fixed cost of power. By this way under Merit Order Dispatch Principles, even the high cost power of Mahagenco is being purchased and cheaper power of other supplier is avoided,” claimed Goenka. The reason for high tariff in Maharashtra is high cost power purchasing up to Rs. 5.50 and Rs.6.50 per unit and denying offer of power even less than Rs. 3.50 per unit including fixed cost. MSEDCL is purchasing high cost power from Mahagenco and consumers are paying for their inefficiency. The mismanagement in coal purchase has increased cost of Rs. 11,602 crore ,” Goenka said.

Blaming Maharashtra Government, R. B. Goenka said that MIHAN-SEZ is the creation of Maharashtra Government and it is Government’s responsibility to take care of the project. He said that the Government has failed to keep its promise to give a perfect job platform to the students of Nagpur and Vidarbha.