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The Maharashtra government on Wednesday again promised to reduce power tariff by at least Re1 per unit by cutting down on losses of state-owned power companies which is in the tune of
Rs55,000 crore. The Maharashtra government on Wednesday again promised to reduce power tariff by at least Re1 per unit by cutting down on losses of state-owned power companies which is in
the tune of Rs55,000 crore. Energy minister Chandrashekhar Bawankule said, "Power generation, transmission and distribution companies have been asked to minimize cost using all
measures. Power generation company Mahagenco has been directed to complete its projects on time to avoid cost escalation. Recovery of losses and minimisation of power theft are being
outsourced. Taking all efforts into account, we expect to reduce the tariff by Re1 per unit in the future." Bawankule, however, didn't give a time frame for reduction in the
tariff, but stated that it was important for giving a push to the Make-in-Maharashtra policy. "For loss-making feeders, Mahavitaran (MSEDCL) is launching feeder franchise scheme under
which a team of youngsters (one engineer and 5 ITI-trained youth) will be given the charge of curbing electricity theft and also sensitise consumers on paying power bills in the larger
interest of the state," said Bawankule, admitting that most feeders are facing 10-45% losses. He blamed a staff crunch for it. "Even if these youngsters manage to halve the loss,
the department will be able to cut down the tariff by 50 paise. If generation and transmission companies also cut down their expenses and losses, we can effectively reduce the tariff by Re1
per unit. When private players charge Rs3.5 per unit, there is no reason that we charge Rs9 per unit." Private players like Tata Power and Reliance Infra charge much less as compared to
the the Maharashtra State Electricity Distribution Company Limited (MSEDCL or Mahavitaran). While MSEDCL has already proposed a hike of 8-10% for 2015-16 which is pending for MERC approval,
Bawankule said, "We will ensure that Mahavitaran hike is minimal or nothing at all this year." Bawankule said last year the company had levied a 20 per cent tariff hike. But due
to the Lok Sabha and Assembly elections, the Congress-NCP government compensated the Mahavitaran with a subsidy of over Rs 700 crore and hence, the people did not bear the burden of the
hike. PER UNIT COST COMPARISON Category Units Mahavitaran Tata Power Domestic 0-100 4 2.62 The difference in industrial tariff is much more than the domestic category MAHAVITARAN CONSUMER
BASE Domestic 1.62 crore Industrial 4.38 lakh Farmers 36.67 lakh BPL 5 lakh In Mumbai, Tata Power and Reliance Infra have major stakes GOVT LOST RS482 CRORE TO POWER THIEVES Early this
month, Mahavitaran's vigilance department said that it had detected 4,461 cases of illegal use of electricity and power theft to the tune of Rs482 crore in 2014. Majority of the cases
(Rs478 crore) pertained to unauthorised use of electricity. The violations were found upon inspection of 10,530 connections.