MSEGCL, MSEDCL at loggerheads over Rs 10,000-cr dues

State-run power utilities Maharashtra State Electricity Generation Company (MSEGCL) and Maharashtra State Electricity Distribution Company (MSEDCL) are at loggerheads over delayed payment charges to the tune of over Rs 10,000 crore by the latter.

MSEGCL chairman and managing director Bipin Shrimali while talking to reporters Monday alleged that while MSEDCL makes prompt payments to other private players as well as the NTPC, it has delayed the payments over so many years.

"MSEDCL owes us over Rs 10,000 crore accumulated over the past 7-8 years. MSEDCL makes payments to other players but gives differential treatment us," he said.

He further said in the last three years, the cost of generation of MSEGCL has not increased, but on the contrary, reduced to Rs 3.70 per unit.

"There are several constraints while recovering from a state company and still continue to keep the generation cost lower. We have to make prompt payments for buying coal and also to railways for transporting the fuel, but we are not getting our due," said Shrimali.

Refuting the allegations, state discom MSEDCL's chairman and managing director, Sanjeev Kumar, said, "We have no intention of not making payments to them. It's a matter of delayed payment charges which is pending with the state government and MSEB Holding Company."
When asked why MSEGCL was not considering selling off its thermal plants which are either temporarily shut or not running at desired plant load factor (PLF) due to lack of coal or water, among others, Shrimali said, "Thermal is a moving economy. Plants like those in Bhusawal, Nashik or Parali are decentralised power generating units and we cannot shut or sell them."
When asked whether the company was planning to sell its excess power to other states or utilities, he said, "We have been asking the MERC as well as the state government to allow us to sell power outside. As per the PPA provisions, we can sell 15 per cent of power, but MSEDCL is not allowing us to do it. We have already received trading license and we have also floated expression of interest for this."