Maharashtra to get 2,000-MW power boost, CM tells power generation and distribution companies to stock up

CM Uddhav Thackeray

Energy Minister Nitin Raut on Tuesday urged CM Uddhav Thackeray to ask government departments to clear dues so that the finances of Mahavitaran and Mahagenco improve. He raised the matter at a meeting the CM held to review the power crisis in the state. The CM asked for daily electricity generation of 8,000 MW, an increase of about 2,000 MW.

The thermal plants of Mahagenco, which has been asked to increase output, currently generate 5,500-6,000 MW. The CM asked Mahavitaran and Mahagenco to be prepared for future requirements. Though there were no power cuts over the past five days, Thackeray asked the power generation [Mahagenco] and distribution [Mahavitaran] companies to prepare a plan for production, stocking coal, including 10 per cent imported coal, and purchasing electricity from various sources for future requirements.

Two men at work on a high-voltage electricity pole, at Kanjurmarg. File pic/Sameer Markande

The CM said he would review the implementation of the decision taken by the utilities every week. He asked for a report on the previous decision and execution. He said he would discuss with the Union petroleum minister for an assured gas supply for Uran station.

On dues and subsidies

Speaking to reporters after the three-hour meeting, energy minister Nitin Raut said he submitted the grievances related to pending dues from various government departments, such as rural development and urban development. He said he urged the CM to ask the government departments concerned to clear dues and subsidies so that the finances of Mahavitaran and Mahagenco that are dependent on each other improve. While he blamed the crisis on coal shortage, fuel provider Coal India Ltd (CIL) said the state utility has been getting more supply in April this year than March last year, despite an outstanding bill.

Mahagenco hasn't been able to pay CIL over Rs 2,390 crore for coal purchase, because distribution company Mahavitaran, too, faced financial constraint while paying the generation company. Raut demanded that the government subsidy amount be given to Mahavitaran immediately because the company has already spent a huge amount on buying the power that was supplied.

He said the state required 37 railway racks daily, but only 26 were made available to transport coal to the stations. "This causes a shortfall. We're trying to mitigate the generation deficit of 2,000-2500MW by buying power from the open market, but for that also we need liquidity. Hence, I requested the CM to have dues cleared. There is a budgetary provision for this," he said. He added that without the subsidy amount deposited, the Centre cannot allow Mahavitaran to raise further capital under its discom revamping scheme. Raut said Mahagenco has turned into a profit-making company and earned R372-crore, while Mahavitaran recovered 99 per cent dues (from consumers other than the government departments).

CIL rubbishes claim

The Ministry of Coal has said the Maharashtra government was receiving more coal at present than in March this year, and the state is meeting its coal requirement as of now, the CIL said. Thermal power plants of Maharashtra were supplied with 70.77 million ton (MT) of coal during the financial year 2021-22. It said coal supply to thermal plants is increasing in tandem with increase in demand for power.

As per the statistics of the ministry, in March 2022, coal supply to power plants of Maharashtra was 2.14 lakh ton per day. The same has been increased to 2.76 lakh ton per day this month, until April 11. It said Mahagenco has been given 37.131 MT of coal in 2021-22. The daily coal supply to Mahagenco in March 2022 was 0.96 lakh ton per day which has been increased to 1.32 lakh ton per day in April (until April 11).

Rs 2,390 cr
Dues pending to Coal India