MVA is the same, despite growing arrears, the BJP resorts to populism and compromises economic discipline by delaying the disconnection of power supplies to agro users

Despite the massive financial crisis, the Maha Vikas Aghadi government, like the previous BJP-led government, has resorted to populism at the expense of financial prudence by announcing a moratorium on power disconnection amid rising arrears and the restoration of electricity to disconnected agriculture consumers. With a customer base of 3 crores, the state-run Maharashtra State Electricity Distribution Company (MahaVitaran) is bleeding as its arrears, debt, and liabilities grow faster than its income realization.

 

Agricultural consumers owe as much as Rs 40,247 crore out of total arrears of Rs 64,093 crore as of December 2921. The MahaVitaran has gotten a lackluster reaction from agricultural customers despite repeated calls for payment by giving simple installments. Because they do not want to hurt their respective vote banks, the ruling and opposition parties are united in their opposition to the disconnection of power supplies to farm consumers.

 

According to MahaVitaran, agricultural consumer arrears were Rs 40,291 crore in March 2020 (against a total of Rs 59,833 crore), Rs 44,920 crore in December 20202 (Rs 71,480 crore), Rs 36,884 crore in March 2021 (Rs 60,821 crore), Rs 41,164 crore in October 2021 (Rs 65,397 crore), and Rs 40,247 crore in December 2021 (against (Rs 64,093 crore).

 

MahaVitaran's loan applications have been turned down by banks, and it now confronts a tremendous issue repaying a loan of Rs 23,000 crore by March 2023, which works out to Rs 1538 crore per month inclusive of interest. MahaVitaran will be unable to increase borrowings if arrears continue to rise faster than revenue generation.

 

Energy Minister Nitin Raut said MahaVitaran has formed a technical group to look at the possibility of farm consumers paying their arrears in 12 installments rather than the current six. He also stated that the committee has been given a month to provide its report.

 

Energy expert Ashok Pendse, on the other hand, claims that electricity to agriculture is not metered and is controlled. The MahaVitaran can demonstrate lower losses and receive bigger subsidies as a result of altered numbers. "MahaVitaran has  exaggerated the horsepower of agricultural pumps, which is a source of controversy among farmers. Arrears are remitted year after year, and no disconnection is made due to arrears, regardless of which party is in office. We've gone from Rs 1,800 crore in Agri arrears to almost Rs 40,000 crore in the last 20 years. MahaVitaran's survival is in jeopardy unless and until the government grants it all of the money," he said.