Maharashtra: Nitin Raut urges Centre to assist MSEDCL facing Rs 71,000-crore losses

MUMBAI: Energy minister Nitin Raut on Thursday urged the Centre to assist state power utility firm MSEDCL in reducing huge losses and modernising the distribution network for over 2.6 crore consumers.
At an online meeting with Union power minister R K Singh with states and union territories, Raut requested the Central government to assist the state -- addressing the chronic issues related to the power sector in Maharashtra.
The meeting was held to discuss the scheme launched by the Central power ministry to bring reforms and modernise the power distribution companies with allocation of Rs 3 lakh crore to assist the state to reduce distribution losses and provide quality service to consumers.
In the meeting, Raut pointed out that MSEDCL had accumulated arrears to the tune of Rs 71,000 crore due to the "policies of erstwhile government". "Major arrears were in the agriculture sector to the tune of Rs 45,000 crore. To reduce arrears in agriculture, we have launched an agriculture policy to encourage farmers to pay their pending electricity bills and give them rebates up to 60 per cent," he said.
He further said that during the Covid-19 pandemic, consumers were given several concessions, deferment of fixed charges for high end consumers and an installment facility to pay bills which were pending for several months from March 2020.
He added that during Covid-19, there were also natural calamities such as cyclones and floods which led to the state-owned power distribution company incurring huge losses.
Singh asked Raut to reduce losses as per the norms. He assured that the Centre will support Maharashtra if distribution losses were reduced as per expectations by the central power ministry.