Bengal May Deduct Power Dues From Plan Allocation

The West Bengal power department has sent a proposal to the finance department that the electricity dues of state government departments should be adjusted against their next budgetary allocation. The outstanding bills amount to Rs 150 crore.

On the other hand, various municipalities served by CESC Ltd have asked the state government to adjust their power bills against the government duty collected from CESC consumers, as is being done in case of the Calcutta Municipal Corporation (CMC).

According to CESC, state undertakings and municipalities together owe the power utility of the RPG group Rs 104 crore. The biggest defaulter is the Howrah Municipal Corporation (HMC), which has not paid any bill for eight years and two months, piling up arrears of Rs 31 crore. Other defaulters include the state-owned Calcutta Tramway Company (Rs 26 crore), other municipalities (Rs 30 crore) and government departments (Rs 17 crore).

Government departments and municipalities do make budgetary provisions to pay electricity bills, but the provisions are often utilised for other purposes, such as, purchase of photocopiers, cellular phones and other items not provided for in the budget.

The state power departments proposal has taken the cue from the Centre, which adjusts dues of central undertakings against the annual plan assistance for the states concerned. The West Bengal finance department too, says the power department, can adopt a similar measure. The finance department has turned down the proposal. But the final word will be said only when the state budget is presented later this month.

The power department has also given CESC and West Bengal State Electricity Board the freedom to disconnect power supply to the defaulters. Power connections to the headquarters of the district magistrate of North 24 Parganas and several police barracks were recently disconnected. However, disconnecting supply to the tramways or to municipalities connected by a single power line that feeds their waterworks too could lead to chaos.

The issue has been further complicated by a two-year-old decision of the state finance department to adjust the power dues of CMC against the government duty collected by it from the consumers. HMC mayor Swadesh Chakraborty has argued that CMC cannot be given a special treatment. The power bills of HMC too, he says, will have to be adjusted against government duty. The mayor refrained from paying the CESC bills. The fact is that not much duty is left after the CMC bills are adjusted by CESC. If HMC and other municipalities are to be given similar privilege, the rate of the government duty will have to be raised sharply.