State may pull plug on free power

MUMBAI: The ruling Democratic Front (DF) is veering towards gradual reconsideration of its electoral promise to supplypower free of charge to farmers. The possibility of a grid collapse—which seems imminent, with the power shortfall in the state having reached 3000 MW—has driven the Congress and the Nationalist Congress Party to backpedal on their assurance.
The grid failure, should it occur, will affect not only the state but also the grids in western and north-east India.The Centre has warnedMaharashtra that it will hold it responsible for any collapses of the grid, it is learnt. It has told the state that paying a hefty farm subsidy (free power, in other words) would hamper the prospects of receiving a central grant of Rs 1,200 crore and loans of more than Rs 1,000 crore.While the grant is for improving the power distribution network in, the loans are received from various corporations which come under the Centre and utilised for the benefit of rural and remote areas of the state.
Union agriculture minister Sharad Pawar and state deputy chief minister R R Patil have already indicated that implementing populist measures may not be possible in toto. This is perceived as a first step in the direction of reneging on the free-power promise. While Rs 326 crore has been already been paid for supplying free power to more than 22 lakh agriculture pumps, the state government faces another demand of Rs 400 crore for immediate payment. The third payment is due in January 2005.
Chief minister Vilasrao Deshmukh has also been reportedly told by the authorities that it may be difficult for MSEB to continue to supply power at a satisfactory level if strict discipline is not observed in its consumption.
The issue is urgent and may even come up at Wednesday''s cabinet meeting, highly places sources indicated. While the demand last week was about 14,000 MW, the supply was just 11,500 MW. The gaphas increased to about 3000 MWdue to two factors. First, farmers have started using power for long hours daily, irrespective of their actual needs, since there are no bills. Second, those without authorised connections have started drawing power illegally,probably because they fear they will never get a connection given the growing power shortfall.