Murdoch Can Be India'S Ally

Funds crunch has severely hit rural electrification in West Bengal. Some 25 per cent of the villages in the state are still to be electrified.

At the beginning of this financial year the West Bengal State Electricity Board (WBSEB) owed the Rural Energy Corporation (REC) Rs 285.56 crore-Rs 95.56 crore in principal and Rs 190 crore in interest.

The board estimates its dues to the REC will rise to Rs 346.68 crore at the end of 1999-2000. Of this, Rs 117.41 crore will be in principal and Rs 229.27 crore in interest.

During the current year, loan from the REC will be about Rs 22 crore, while the interest burden will go up by Rs 39 crore.

West Bengal is among those states lagging behind in the area of rural electrification despite its surplus power availability. Of the 38,024 mouzas in the state, only 29,402 were electrified till the beginning of this financial year. In 1998-99, for example, the Board had set for itself a target of reaching 273 mouzas but could reach only 83 mouzas due to paucity of funds.

Despite several rounds of talks, no breakthrough has been reached towards the payment of the REC's arrears. This has stifled the flow of funds from the corporation and the WBSEB does not have much resources of its own. Further, the West Bengal Rural Energy Development Corporation is yet to commence work with no office space allocated to it.