According to sources, there are a number of consumers, including sick companies, from whom getting back the dues is difficult. However, some recovery can be envisaged from those units being helped by the BIFR.

MSEB is under tremendous pressure to improve its bottomline, sources said, adding that this is largely because of payment guarantee it has offered to big private power producers in the state. This includes the 2184 mw Dabhol power project and the 1082 mw plant of the Ispat group.

"While the board has been trying to recover dues, the new additions from protected sectors keep piling," sources said. This explains why accumulated arrears as of March 1998 are higher than the levels of1996-97. MSEB is quite worried about its present position as it needs financial aid from the private and government and international agencies to increase its own generation capacity.

While private lenders may charge higher interest, development agencies may stay off due to MSEB's poor performance in recovering dues, sources said. The board earlier lost out on the World Bank loan facility for the same reason.

Though MSEB has expedited its tariff collection, it may not be able to receive the entire amount, sources said, adding that this is due to the state's protectionist attitude. There are also cases where the dispute over the issue of arrears needs to be settled through a legal course which means a longer time schedule.

Of the total Rs 2,500 crore, MSEB has to recover over Rs 780 crore industrial (low tension and high tension), commercial and residential consumers. From the agriculture sector, the amount to be recovered is around Rs 640 crore, over Rs 300 crore from various municipal corporations andRs 65 crore due from interstate bodies.

Over Rs 450 crore are pending with sick companies, money locked in legal disputes and the National Textile Corporation. There are other consumers who together owe over Rs 300 crore to MSEB.