MSEB sources told The Financial Express that if the wind developer supplies less quantum, it will have to procure the same for distribution or for meeting the shortfall of the third party by purchasing the same from some other sources. This will naturally put an additional burden on the MSEB's kitty.

MSEB has proposed that 50 per cent of the additional cost should be borne by the wind developer. It has also recommended that to avoid the calculation every year, the above rate would be escalated by 5 per cent per year.

As per the original policy, wind power developer was allowed a sale of power to any two (industrial/commercial) conumer on two per cent wheeling charges. However, there was no mention of penal rate if the wind developer fails to meet its promise on power supply.

In case of banking of power by wind developer, MSEB has decided to permit it without any time restriction for a period of six months in a year (January to June/July to December). The energy not utilised at the end of six months will be treated as lapsed.

On transmission losses, MSEB has made amendments to the wind power generation policy. MSEB was to bear zero per cent transmission losses for the first three years and one per cent thereafter.

However, according to the revised policy, MSEB will bear transmission losses as follows: first year operation-0.5 per cent of energy received for wheeling, second year-0.75 per cent of energy received for wheeling and three year-one per cent energy received for wheeling.

Moreover, tariff for pruchase of power in case of nonconventional source of enregy which has been considered at Rs 2.25 with base year 1994-95, will be escalated at 5 per cent for 1999-2000. For the next three years there will be no change in tariff and for the seven years period, there will be 5 per cent escalation annually.

In respect of bagasse-based power genration, MSEB has said that the developer will necessarily not be a sugar factory as far as sale of power is concerned. The developers other than sugar factory can now sell surplus power to sugar factories also. MSEB is considering more than 10 proposals on bagasse-based power generation.