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This is an archive article published on May 28, 2000

Ispat tops MSEB defaulters list

MUMBAI, MAY 27: The Ispat group, Lloyds Steel, Telco, Jain Irrigation, PAL-Peugeot, Uttam Steel, Garware Polyster, and Century Rayon are s...

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MUMBAI, MAY 27: The Ispat group, Lloyds Steel, Telco, Jain Irrigation, PAL-Peugeot, Uttam Steel, Garware Polyster, and Century Rayon are some of the names that figure in the "Top 100" defaulters list put out by the Maharashtra State Electricity Board (MSEB). These companies owe MSEB a whopping Rs 620 crore.

The notable defaulters include the Ispat group, which is setting up a 312mw combined cycle power project at Dolvi – Rs 110 crore, Uniferro International (Gondia)-Rs 99 crore, Lloyds Steel (Wardha)-Rs 70 crore, MEL (Chandrapur) -Rs 49.31 crore, Universal Fellow Allied (Gondia)- Rs 18 crore, Khandelwal Ferro Allow (Gondia) – Rs 14.84 crore, Model Mills (Nagpur)-Rs 11.86 crore, Standard Mill (Washi)-Rs 10.59 crore, Century Rayon (Kalyan)-Rs 8.53 crore, NRC (Kalyan)-Rs 5.99 crore, Tata Engineering (Pune)-Rs 5 crore, and Jain Irrigation System (Jalgaon)-Rs 4.17 crore.

Mahindra Ugine Steel (Pen) owes Rs 3.79 crore, PAL-Peugeot (Kalyan)-Rs 2.88 crore, Uttam Steel (Pen)-Rs 2.45 crore, Shirke Paper Mills (Satara)-Rs 1.91 crore, Ballarpur Industries (Chandrapur)-Rs 1.88 crore, Garware Polyester (Aurangabad)-Rs 2.49 crore, Mukand (Kalwa)-Rs 1.20 crore, Prudential Cements (Yavatmal)-Rs 87 lakh, and Solapur Cooperative Spinning Mill-Rs 94 lakh.

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MSEB sources said it will step up recovery efforts soon as per Section 24 of the Indian Electricity Act, 1910. The sources added that power disconnection was not possible always mainly due to prohibitive orders from the government, unemployment, labour unrest, and industry sickness.

In a related development, MSEB has launched an energy-accounting system, with an emphasis on calculations of transmission and distribution losses at the MSEB, zone, circle, and division levels. The purpose is to monitor the the loss-reduction programme as directed by the Maharashtra Electricity Regulatory Commission (MERC) in its recent order on tariff hike. The MERC has asked MSEB to cut transmission and distribution (T&D) to cut the T&D losses by 5 per cent from the existing 31.2 per cent.

Under the energy-accounting system, MSEB will prepare an energy balance sheet for T&D. It plans to monitor the decrease in T&D losses by fixing quarterly targets at the division level.

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