Power distributor pleads for clearing upgrade

The state-owned power distribution utility MSEDCL has urged the Maharashtra Electricity Regulatory Commission (MERC) to approve the capital expenditure for upgrading and modernising its distribution network.

Otherwise, the power utility feels, a situation would arise where despite the availability of power there will be no network to distribution of that power.

The MSEDCL, around year ago submitted to the power regulator a plan of Rs 14,400 crore consisting of 122 projects to upgrade the distribution network.

However, fearing that the upgrade will lead to an increase in the power tariff, the power regulator had put the approval for the projects on hold and asked the utility to submit revised estimates for each project.

After this, the MERC has so far approved only 42 projects worth around Rs 3,300. But considering that the state will be soon be getting 2,150 Mw power from Ratnagiri Gas and Power Pvt Ltd (RGPPL) and around 300 Mw from the state-owned generation utility Mahagenco. The MSEDCL fears a situation where there will be power but no network to distribute it.

MSEDCL's managing director A B Pandey said most of its network is two to three decades old and it is overstretched while carrying the present load of 9,000 Mw to 10,000 Mw per day.

With many projects in the pipeline, it will be impossible for the utility to distribute the power to consumers. As loading the aging distribution network with further power will only lead to frequent breakdowns at various points.

Pandey also brought to the notice of commission that we must also follow the principal which is practiced across the world. With an investment of every Rs 100 in generation, there should be at least an investment of Rs 50 in transmission and Rs 50 in distribution networks, he added.

Agreeing that there will be some increase in the tariff, Pandey said, "This expenditure is necessary for quality and uninterrupted power supply to consumers."