Mahadiscom sanctioned Rs 100 cr for power buy

The state government has decided to allot Rs 100 cr for Maharashtra Electricity Distribution Company Ltd (Mahadiscom) every month to buy electricity from power companies and captive power generation units.

The decision comes even as the state government is reeling under a 4,500 mw power shortage with rural areas suffering 12-hour power cuts.

However, it has not been yet been decided whether the state government's aid would be in the form of a loan, equity or grant. With this assistance, Mahadiscom expects to purchase around 900 mw of power.

The state government would continue its assistance only for two to three months as the Maharashtra Electricity Generation Company Ltd's (Mahagenco) Parli, Paras and Ghatghar projects are expected to start power production by April, adding 750mw capacity.

By May first week, Ratnagiri Gas and Power Pvt Ltd's Dabhol Phase 1 project is also expected to be operational. The project is expected to supply another 750 mw of electricity.

"After getting the go ahead from the state government, we have already started buying 300 to 400mw daily from Tata Power's liquid fuel-based plants at Rs 4.30 per unit,'' a senior official at the department of electricity said.

"We had started purchasing, around 200mw from NTPC's plant at Kawas last month. However since it was produced from Naptha, it costed as high as Rs 7 per unit. So we stopped buying it after a fortnight or so. But now, with the state government's assistance, we would be able to resume the deal.

Mahadiscom is also planning to buy power from captive power units. To encourage captive power units to enhance their operating efficiency, the state government has also decided to waive off fuel sales tax.

State's Energy Minister Dilip Walse-Patil has called a meeting of industries with captive power generation capacities next week to discuss the power crisis.

According to industry sources, if captive power units use diesel as fuel then the cost of power would be around Rs 10 per unit and if they use burned furnace oil, it could be between Rs 5 to Rs 7.