Mahavitaran's financial health set to worsen

Mumbai: Chief minister Devendra Fadnavis’ announcement that the power connection of agricultural pumps will not be disconnected on grounds of arrears of bills will worsen the financial condition of the Mahavitaran company which is facing a financial crunch due to arrears to the tune of Rs 40,000 cr. 

Senior officials of the energy department said that the agricultural pumps’ arrears will reach Rs 26,000 crore by the end of this month.

Mr Fadnavis’ announcement regarding power bill arrears will create problems for the Mahavitaran company which is already facing a financial crunch. The annual billing of 41 lakh agricultural pumps across the state is Rs 3,500 crore but recovery is very poor ranging between 12 and 15 per cent, creating a problem for Mahavitaran. After good rainfall, the company started a disconnection drive after Diwali to recover arrears, but Mr Fadnavis asked the officials not to put pressure for recovery and the situation remained as it was. Now, after Mr Fadnavis’ official announcement, officials fear that the 12 to 15 per cent will also remain unpaid.

Arrears from all consumers will reach Rs 40,000 crore, of which, the share of agro pumps will be Rs 26,000 crore, including fine and interest. 

When the government declares concessions for consumers, it has to pay the Mahavitaran company for the same Now it is expected that the government will pay the company if it wants to stay recovery of power bills.