Energy Minister in conversation with Mumbaibest .

MSEB hopeful of financial help from World Bank

The Maharashtra State Electricity Board (MSEB) is hopeful that the World Bank will finance MSEB's new power projects in Maharashtra. The recent visit of World Bank president James Wolfensohn has paved the way for funding of new power generation projects.

Speaking to Mumbaibest, State Minister for Energy Padamsinh Patil said, "The Maharashtra government hopes that the World Bank will re-consider its earlier decision not to fund MSEB projects during the former government's rule in the state. Wolfensohn's meeting last week with the state government has impressed the WB chief that the government is seriously working toward enhancing the financial health of Maharashtra. The Power Finance committee has agreed to dole out a loan of Rs 1350 for new projects. Wolfensohn appreciated the trifurcating of MSEB into companies for transmission, power generation and distribution. He was impressed by the government's efforts to improve the financial health of MSEB. The government hopes that the World Bank will take a positive approach while considering the proposals put up for financing power and economic-growth related development projects in Maharashtra.''

Patil stated that in 1997, the World Bank had virtually stalled funding MSEB projects as the then government had not shown the will to prevent the MSEB from suffering recurring financial losses. Wolfensohn patted the Maharashtra government on its back for trifurcating MSEB into three companies which will help in pulling out MSEB from financial losses.

Nevertheless, Patil admits that MSEB needs around Rs13,000 crore to come out of its economic crisis. "MSEB is in the process of floating a bond of Rs 1200 crore, in addition to the loan of Rs 1350 crore expected from the Power Finance committee. MSEB has recently taken stringent measures to recover arrears to the tune of Rs 4500 crores from defaulters. MSEB's condition is precarious and the state falls short of its power supply needs by approximately 1200 to 1800 Megawatts due to this. All out efforts are being made to enhance the financial health of MSEB. Excluding farmers who are reeling from financial losses on account of the drought, arrears will be recovered from other defaulters. Recovery of arrears and other dues, will help in a big way to boost the financial health of MSEB. Losses in transmission could be controlled by constructing new power stations of varying capacities and laying an elaborate cable network in rural areas.''

Patil claimed that power theft is a major menace and MSEB is now determined to tackle it with an iron fist. ``Punitive action will be taken against syndicates involved in power thefts. MSEB employees conniving with these power theft gangs will be severely dealt with by the government. In the last two months, around two dozen MSEB employees including a Superintendent Engineer, 3 Junior Engineers and 2 Assistant Engineers, were suspended for abetting in power theft,'' averred Patil. The union government has estimated that an investment of Rs 8,00,000 crore is needed to generate an additional 1 lakh MW of power by 2005, to bridge the burgeoning gap between supply and demand for electricity.

By :Mani D'Mello