Streets and other public utility places in the entire coastal belt of Orissa including capital Bhubaneswar have plunged into darkness following discontinuation of power supply to different urban bodies by Central Electric Supply Company (Cesco) on the ground of non-payment of dues.
Cesco sources claimed that the outstanding amount towards payment of electricity bills by 22 municipal and Notified Area Councils (NACs) located within company's area of operation have mounted to Rs 17.17 crore.
Some of the top defaulters of the company included Bhubaneswar Municipal Corporation (Rs 424.26 crore), Cuttack Municipal Corporation (Rs 4.45 crore), Puri Muncipality (Rs 1.17 crore), Angul Municipality (Rs 68 lakh), Dhenkanal Municipality (Rs 54 lakh) and Paradeep NAC (Rs 45 lakh).
Cesco autherities said they had disrupted power supply to urban local bodies as their repeated reminder to them to clear the dues had gone unheeded. The company had served seven day notices to each of them under Orissa Electricity Regulatory Commission (OERC) distribution code stipulation before taking this punitive measure.
Sources further pointed out that the municipal bodies had been the first in the long list of defaulters against whom the company intends to crack its whip to recover the dues. Infact, the total outstanding amount pending against various sections of consumers including domestic, industrial and governemnt departments and undertakings stand at a whopping Rs 600 crore.
Among the government departments, the top defaulters included public health division (Rs 37.41 crore), education (Rs 3.23 crore), health (Rs 3.46 crore), textile (Rs 4.85 crore), urban development (Rs 3.86 crore), home (Rs 2.06 crore), and water reosurces (Rs 3.03 crore). Sources said if these government organisations did not pay up their dues soon, the company would be forced to discontinue power supply to various offices under them as well.
Following the dismantling of Orissa State Electricity Board (OSEB) and privatisation of distribution network, Cesco had taken up the responsiblity of supply of power in coastal Orissa comprising four electric circles namely Cuttack, Bhubaneswar, Paradeep and Dhenkanal and 15 distribution divisions under them. It has a clientele of 6.21 lakh consumers and its area of operation constituted 30 per cent of the total area of the state.
The US based AES Transpower along with its Indian partner Jyoti Constructions hold 51 per cent stake in Cesco while the rest 49 per cent is vested with Grid Corporation of Orissa (Gridco).
Sources pointed out that pressure is on Cesco to mobilise resources as it is reeling under a loss of Rs 130 crore for damages dealt to its infrastructure during the super cyclone in last October. The fund need has become even more pronounced with Orissa Electricity Regulatory Commission directing Cesco to restore power supply to the areas badly affected by cyclone by end of this month. Hence, this drive to recover the dues, they added.
Otherwise also, they said, the purpose of power reform in the state would be defeated if the financial mess for which the erstwhile Orissa Electricity Board (OSEB) had become sick is not cleaned up.
Sources said, though the municipalities had been collecting taxes from the public to provide for basic amenities, they have not been paying the bills due to the power utility companies.
Meanwhile, some of the urban local bodies have made counter claims on Cesco by imposing holding taxes on the installations of company located within their municipal limits.
Cesco sources, however, rejected such claims saying there was no precedent in the country of municipalities collecting taxes from power companies providing essential services.
