The state Congress unit has warned that the saffron alliances' proposed move to clear the second phase would be detrimental to the state's financial position.

In a memorandum submitted to governor PC Alexander, the party has made it clear that the state government should not show haste in giving its nod for the second phase "till the issues concerning phase-I are finally settled in the interest of the Maharashtra."

MPCC-I has said contrary to the state deputy chief minister Gopinath Munde's assurance in the state legislature, Enron's per unit cost in June was Rs 4.95. Munde had promisd that the per unit cost would not be more than Rs 3.

The party has feared that the consumer would have to pay Rs 6.30 per unit after consodering the MSEB's transmission and distribution losses which are going to remain at 15.2 per cent. Moreover, the Enron's bill for the same month for the supply of 236 million units to the Maharashtra State Electricity Board (MSEB) was of Rs 117 crore.

MPCC-I has also taken a strong objection to the state government's decision to clear the Rs 500-crore project for the redevelopment of 207 Bombay Development Department (BDD) chawls spread across south central and north central Mumbai. The party has charged that the redevelopment plan has been finalised without taking the local residents into confidence instead "with a clear intention to benefit the private builders."

MPCC-I has also opposed the state government's proposal to hike the petrol prices by one per cent and diesel prices by one per cent to defray the cost of 55-flyovers and make good the loss of income due to reduction in toll tax.

On state government's decision to allot plots or residential premises under 10 per cent quota to various organisation or individuals, the state Congress unit has said the government should not indulge in such acts since it does not enjoy the constitutional legitimacy to take such decisions.

MPCC-I has appealed to the governor that the state government should be restrained from taking any policy decisions which will have a far reaching financial implications on the state's exchequer. The party has pointed out that the state election department has lifted the model code of conduct to facilitate the state government to take routine decisions regarding adminitrative matters.