Mpseb Cuts Down On Power Procurement

The debt-ridden Madhya Pradesh State Electricity Board (MPSEB) is reducing power purchases from external utilities such as the National Thermal Power Corporation (NTPC) and other power utilities as there is a marked decline in the power purchases made by the state government from it in the recent past.

According to highly placed sources the state government had allocated Rs 101.59 crore for 867.470 million units in September 2001 against Rs 115 crore in the corresponding previous period.

Adding to the pressure on MPSEB is the huge debt that it has run up with the NTPC.

Data received from well-placed sources say that MPSEB's power purchases from NTPC has declined despite demand going up due to which the state is facing a power crisis.

The MPSEB had purchased 1421.157 million units of power in January 2001, 1109.693 million units February 2001, 1147.69 million units in March 2001, 1103 million units in April 2001, 1122 million units in may 2001, 876 million units in June 2001, 739 million units in July 2001, 706 million units in August 2001 and 867 million units in September 2001.

The Madhya Pradesh government has to pay Rs 404.41 crore to MPSEB against free power supply to weaker sections of the society, Rs 42.84 crore for free power supply to single-point connection holders and Rs 360.79 crore for free power supply for irrigation/ pump houses.

The MPSEB has last week purchased power 2,242 mw from NTPC. The thermal power units of the board are generating 1,644 mw, while its hydel power units are generating 723 mw.

Meanwhile, the state power board is expecting a loan of $350 million from the Asian Development Bank. Earlier, another German bank, KFW, had sent its team to assess the investment potential in the state.

Highly placed sources in the board said the German bank was seeking opportunities to enter into an investment deal with the MPSEB but the electricity board management had not taken any interest in the issue. Due to this, MPSEB has received no response from the German bank even after two months since the team visit, they said.