The Hindu Business Line : Maharashtra to hand over 4 new circles to pvt cos

Reasons cited
Nanded, Parbhani and Beed circles have been spawning losses due to a variety of reasons, including increasing power thefts, non-payment of dues and messy political interferences.

Mumbai , Dec. 28

Maharashtra State Electricity Distribution Co Ltd (MSEDCL) is planning to fork out four more loss-making power distribution circles to private companies.

MSEDCL has identified Nanded, Parbhani and Beed circles in the State, which are reeling under power distribution losses of more than 50 per cent, for handing over to private distribution companies.

While the Beed circle has reported a loss of 59.1 per cent, Nanded and Parbhani circles are down with 55.8 per cent and 52.5 per cent losses, respectively.

The fourth circle that may go into the hands of a private power distribution company is yet to be identified, sources told Business Line.

These circles have been spawning losses for MSEDCL due to a variety of reasons, including increasing power thefts, non-payment of dues and messy political interferences, the sources pointed out.

Handing over these circles to a private company for power distribution is expected to reverse this trend.

The sources said the feasibility study for handing over these circles is under way and the proposal will be firmed up by June next year.

Supply figures

On an average, MSEDCL supplies 108 million units per year to Beed circle, its average annual revenue from here being Rs 60 crore and collection efficiency 59 per cent.

Nanded gets a supply of 103 million units, fetching revenue of Rs 102 crore and collection efficiency 73 per cent. For Parbhani, MSEDCL supplies 98 million units, getting revenue of Rs 54 crore and a collection efficiency of 59 per cent. The Bhiwanti circle was the first one to be handed over to a private company, after MSEDCL concluded a distribution franchise agreement with Torrent Power Ltd.

Under this agreement, the private company will be distributing power to 1.6 lakh consumers within the circle for 10 years. Torrent is expected to take over the power distribution operations in this circle by mid-January.

Maharashtra is divided into 11 zones, 39 circles and 125 divisions under the power distribution system.

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