Congress alleges Rs 550-cr irregularities in Energy Dept

Image
Press Trust of India Mumbai
Last Updated : Feb 08 2016 | 8:42 PM IST
Congress today alleged the Maharashtra Energy Department has caused a "loss" of Rs 550 crore to the exchequer by not charging duty for "open access" use of electricity by industries.
"There has been a revenue loss of Rs 550 crore to the state exchequer because of mismanagement and probable intention of giving undue and illegal benefits to select industries starting October 2014," Congress spokesperson Sachin Sawant said.
He said 1,398 industrial units had applied for a licence to obtain open access permission of electricity. Under the 'open access' system, industries can purchase power from any generator using the state-run MSEB's transmission line.
"These industries consumed 6,618 million units from October 2014 onwards after getting permission. But, the government has not charged duty on this consumption although there is a provision for the same in the Mumbai Electricity Duty Act, 1958," he said.
MSEB kept reminding the Energy Department about the duty issue, but their pleas were ignored, Sawant claimed.
The Congress leader said he has written a letter to Energy Minister Chandrashekhar Bawankule, seeking action against those responsible for the alleged irregularities.
"They have increased charges on fuel citing drought. Here, they are favouring industrialists at the cost of the common man."
Meanwhile, Bawankule said he will hold a meeting with Energy Secretary and Managing Director of Maharashtra State Electricity Distribution Company (Mahavitaran) on Wednesday and reply to the allegations after getting a clarification from them.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 08 2016 | 8:42 PM IST

Next Story