Govt may pull back power sop

NCP, which holds Finance and Energy portfolios, was never very enthusiastic about the free power decision. Union Agriculture Minister and NCP chief Sharad Pawar has publicly disapproved of the idea on several occasions. Sources said even Congress has veered round to the view now.

Energy Minister Dilip Valse-Patil, of the NCP, discussed the issue with Pawar and some senior Congress leaders yesterday.

Sources said due to availability of free power, the demand in the state during peak hours touched 13,500 MW against a supply of 11,000 MW. This has resulted in regular load-shedding in the morning and evening. Three major industrial centres 8212; Nagpur, Pune and Nashik 8212; have been particularly hit by load-shedding. The excess load, said sources, posed a threat to the western grid too.

The state is required to provide a subsidy of Rs 1,600 cr every year to Maharashtra State Electricity Board to make up losses suffered by it due to the free power supply. The line-losses suffered by the Board in the course of transmission and distribution 8212; currently placed at 38 per cent 8212; cost the Board Rs 4,560 per year. The Board plans to bring down the line-losses by at least 12 per cent.