The study, prepared on the state of state electricity boards (SEBs) and submitted to the state government, is significant in the backdrop of the current furore on supplying free power to 22 lakh agricultural consumers in the state. The Sena has been pressing hard for free power to farmers while the BJP has made it clear that it will be possible only if the state extends budgetary support to the cash-starved MSEB.

At the national level, the study said that the share of domestic and agricultural sectors in total sales had increased from 27 per cent in 1984-85 to 47 per cent in 1995-96 while that of the industry had fallen from 50 per cent to 35 per cent. The average cost of electricity on an all-India basis is estimated to be Rs 1.72 per unit and the average tariff Rs 1.44.

Theaverage tariff for agriculture works out to be 21.3 pasie/kWh in 1995-96. The agriculture sector accounted for only 4.9 per cent of total sales revenue as against a 29 per cent share in sales.

The effective subsidy has reached a record Rs 18,000 crore of which the subsidy on agriculture alone would be Rs 14,000 crore. The impact of this subsidy, which is only partly compensated by some of the state governments to the SEBs which convert them into loss making entities, is projected to be Rs 10,000 crore.

The Madhya Pradesh State Electricity Board, which provides free power upto 5 horse power hp to farmers, buys 40 per cent of its power from states like Maharashtra and central utilities. MPEB owes Rs 70 crore to the MSEB and Rs 500 crore to the National Thermal Power Corporation. Agriculture makes up for more than 35 per cent of the total consumption but accounts for only three per cent of the revenue.

The Punjab SEB's decision to supply electricity free to the agriculture sector, which consumes 40 percent of the total power, will compound its losses.

In Tamil Nadu where the agriculture sector is getting free power, the state is making a necessary budgetary support to the Tamil Nadu Electricity Board. However, the budgetary requirement is low compared to Maharashtra which will have to allocate initially Rs 627 crore to MSEB before it formally decides to provide free power to farmers.

TNEB has maintained a good track record with a high PLF of 72 per cent and its transmission and distribution (T&D) losses are comparable with other states at 17 per cent.

The financial health of the Andhra Pradesh SEB has deteriorated because of huge subsidies to agriculture which accounts for almost 45 per cent of electricity consumption. This has been compounded by poor revenue collection and high receivables.

Incidentally, APSEB has reported a PLF of 78 per cent last year, the highest among the SEBs and its T&D losses, at 19 per cent, are comparable to other states.

The Haryana SEB has been incurring heavy lossesand the main reasons were heavy subsidies to agricultural sector which consume 45 per cent of electricity. T&D losses are also a high 32 per cent and the average PLF is a mere 47 per cent.

In Rajasthan, tariffs are generally lower than other states although agriculture is charged a minimum rate of 51 paise per unit. The T&D losses are high at 26 per cent and the board is planning extensive use of electronic metering to address the problem. The centre has given its approval to the state's power sector reforms bill which envisages corporation of RSEB and setting up of an independent tariff regulatory authority.