Thackeray8217;s free electricity scheme throws spanner at BJP

8220;Though it was a major policy decision, which would be a big burden on the government and Maharashtra State Electricity Board MSEB, we were not even informally told about it,8221; a senior BJP minister said. Since announcement has come from no less a person than Thackeray, the decision will have to be placed before the Cabinet for approval. 8220;I feel it is not feasible to exempt the farmers from paying electricity bills,8221; the minister added.

The minister blamed the Sena for ignoring the BJP while taking this major policy decision and recalled the way Housing Minister Sureshdada Jain had chalked out the ShivshahiPunarvasan Prakalp project 8211; for the rehabilitation of slum-dwellers 8211; without consulting the BJP. Thackeray8217;s announcement, according to some officials, is likely to push the government to the brink of a financial crisis and letting the World Bank to permanently snap ties with MSEB.

According to official estimates, 24 lakh farmers are subscribers to the MSEB and their annual power consumption is worth over 800 crore rupees. 8220;As of now, power supply to these farmers is subsidised. Against the rate of 2.10 rupees per unit, the MSEB is supplying them at the rate of 30 to 40 paise per unit. 8220;If we waive even that rate, then it will adversely affect the the board,8221; a senior MSEB official said.

Besides low rates for the agricultural consumers, the board extended a subsidy of 79.28 crores for rural drinking water supply schemes, 3025.24 crores for agricultural consumers in drought affected areas, 546 crores for to domestic consumers, 35.63 crores for street light to gram panchayats and 12.98 crored for lowtension consumers.

The official said that the World Bank has already expressed strong displeasure over the manner in which the board is being run. In its latest communication, the World Bank had specifically asked the government to distance itself from the board in the process of decision making.

When a high-level delegation comprising Deputy Chief Minister Gopinath Munde, Chief Secretary P Subramanian and MSEB Chairman Ashok Basak called on the World Bank officials at Washington on Tuesday, they refused to extend financial assistance to any of the MSEB projects on the ground that it failed to comply with the conditions laid down by the World Bank.

8220;It will not be possible to exempt all the 24 lakh farmers from payment of electricity bills. The government will have to draft a comprehensive scheme for the purpose and then extend financial assistance to the board for the purpose,8221; the official said.

Another senior official said that if the government takes such a decision as declared by Thackeray,then it will create a series of problems for the board as other consumers too will demand similar concessions.

Though Chief Minister Manohar Joshi had on several denies any financial crisis before his government, it is known quite well that all is not well with the alliance government. Joshi8217;s still believes that there8217;s nothing wrong with his government and says that all these have not forced the State government to reduce the planned expenditure or resort to take an overdraft to tide up the financial crisis.