• PAGE ONE
• INDEX
• HOME

MERC fiat to Govt on dues to SEB

Our Bureau

MUMBAI, July 6

THE Maharashtra Electricity Regulatory Commission (MERC) today ordered the State Government to file, within seven days, an affidavit declaring the subsidy amount payable to the State Electricity Board for financial year 2001-02.

The Government has announced that it would reduce subsidy for agricultural and powerloom customers to Rs 200 per horse power per month and Rs 50 respectively. In the previous year, the subsidy to farmers was Rs 300 and for powerloom weavers, Rs 125.

However, this amount is subject to change since MSEB's tariff revision for the current fiscal is still pending at MERC.

This year, the Government reduced the subsidies as part of tariff rationalisation. The commission, however, pulled up the Government for using the words ``concessional tariff'' when announcing the subsidy.

``Under Section 29, only the commission can determine the tariff for power utilities in the State. This is not a legal term and the State should refrain from using it,'' Mr Venkatchary, MERC member, told Government officials.

MSEB was to receive Rs 745.82 crore as subsidy in two instalments from the State Government for the year 2000-01, which has still not been paid due to ``ways and means constraints''. The State has to pay the amount by October 31, 2001.