Chhattisgarh refuses to pay MP Rs 3,640 crore

Chhattisgarh Chief Minister Ajit Jogi is heading for a conflict with Madhya Pradesh over sharing assets and liabilities in the power sector ...

Chhattisgarh Chief Minister Ajit Jogi is heading for a conflict with Madhya Pradesh over sharing assets and liabilities in the power sector after the Union Power Ministry slapped a Rs 3,640 crore award on the Chhattisgarh State Electricity Board (CSEB).

The Union ministry is playing the adjudicator under the States Reorganisation Act as the two states have been squabbling over sharing assets and liabilities of the Madhya Pradesh State Electricity Board (MPSEB). The Chhattisgarh government feels the CSEB would run into a crisis if the amount is paid. CM Ajit Jogi says, ‘‘The award is unacceptable and we have to consider other options.’’

But Madhya Pradesh, which has already been informed by the Union Power Ministry, has sent its claims to Chhattisgarh. ‘‘This award is not acceptable. We’ll go for a revision and, if necessary, we’ll approach the courts,’’ says CSEB chairman B.S.Banafar.

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On his return from Srinagar, Jogi met senior government and CSEB officials and asked them to prepare papers for challenging the award. Sources said Chhattisgarh has found itself on the wrong foot as it was unable to present its case properly before the Central Electricity Authority, that was engaged by the Union Power Ministry to decide on the assets and liabilities.

The main issue of conflict between the two states relates to the CSEB’s creation. While the board was created on December 1, 2000 — within a month of the formation of Chhattisgarh — Madhya Pradesh says the MPSEB was statutorily bifurcated in April 2001.

Another bone of contention between the two Congress-ruled states is the assets which came to Chhattisgarh.

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