The Hindu Business Line : Maharashtra power distribution utility in liquidity crunch

At a glance
Projects worth Rs 500 cr stalled for want of loans.
MSEDCL may consider raising the money from cooperative banks.
It has approached the Centre to solve the deadlock.

Rahul Wadke

Mumbai, Aug. 26 Maharashtra State Electricity Distribution Co Ltd (MSEDCL), the distribution utility with a turnover of over Rs 18,000 crore, is facing a liquidity crunch. Its Rs 15,000-crore ambitious plan of developing and upgrading the power distribution infrastructure in the State is stalled.

The plan is to be completed in 2010.

Lenders such as Power Finance Corporation Ltd (PFC) and Rural Electrification Corporation (REC) are unlikely to further fund the projects of the utility as they have reached exposure limit.

MSEDCL could consider raising the money from cooperative banks in the State, sources in the company said.

Loan halt

Sources said that projects to the tune of Rs 500 crore have been initiated by MSEDCL but currently stalled as PFC and REC have stopped loan disbursements. MSEDCL has approached the Union Government for solving the deadlock.

Between 1998 and 2005 no major infrastructure projects were carried out in Maharashtra. To surmount transmission and distribution losses of 35.2 per cent (2004-05) and recover cumulative arrears of about Rs 10,000 crore from customers, the projects were initiated in 2005.

Louis Berger Group was appointed as the principal project management consultant. Its role was not only to implement the projects but also train MSEDCL personnel in project and systems management.

Network

MSEDCL network is divided into 11 distribution zones, 39 circles and 118 sub-divisions. For implementing the upgradation plan, the load profile for every electrical sub division in the State was computed and funds were earmarked accordingly.

Zone wise infrastructure plan cost for Bhandup zone: Rs 868.29 crore, Kalyan zone: Rs 840 crore, Konkan zone: Rs 463.60 crore, Kolhapur zone: Rs 2,386.42 crore, Latur zone: Rs 1,603.31 crore, Nashik zone: Rs 3,057.88 crore, Pune zone: Rs 1,333.62 crore, Amravati zone: Rs 1,312.79 crore, Aurangabad zone: Rs 923.84 crore, Nagpur urban zone: Rs 712.91 crore, and Nagpur rural zone: Rs 811.64 crore.

More Stories on : Power | Maharashtra | Channels and Franchises

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page