The acute energy crisis in Maharashtra forced the State Cabinet to do the politically unthinkable: it cleared an Energy Department proposal today to allow the Maharashtra State Electricity Board (MSEB) to buy power from the Dabhol Power Company at Rs 2.80 per unit.
Technically, the Cabinet is buying power from the Investment Development Bank of India which is in possession of the plant. The Cabinet accepted IDBI’s condition that the rate of naphtha would be determined by its market price. The naphtha price will be passed to the consumer—in this case, MSEB. An increase in power tariff is also reportedly on the cards.
The Democratic Front Government’s coordination committee had favoured a one-year contract with IDBI for buying power from the rusting plant in Dabhol in Konkan.
The panel had observed that the State was a facing severe power shortage, and that immediate steps were necessary to avoid load-shedding. A team of experts has already visited Dabhol and reported that the plant could be made operational soon. Another committee, headed by Chief Secretary Ajit Nimbalkar, had also suggested that the plant be re-started immediately.
The Cabinet today discussed other recommendations of the Nimbalkar committee, namely, that the timing of work shifts in industrial units be changed, that power theft be checked by invoking provisions of the Bombay Police Act, that government offices and local self-governments launch drives to cut back power consumption and that restrictions be imposed on neon signs and billboards in cities.