Sanjay Jog

Mumbai, June 3: The Maharashtra State Electricity Board (MSEB), which has recently refused to pay the April bill of Rs 136 crore to Dabhol Power Company (DPC), has incurred total expenses of whopping Rs 3,362.90 crore over the purchase of 6,451.78 million units from DPC between May 13, 1999 and April 2001.

MSEB, which suspended the power purchase since May 29, 2001 after serving an avoidance notice to DPC, has purchased 163 million units at a per unit tariff of around Rs 10. DPC may send the power purchase bill close to Rs 140 crore to the MSEB by June 7. MSEB has paid as high as Rs 25.51 per unit for 39.12 million units in June 2000 and as low as Rs 3.02 per unit for 327.58 million units in August 1999. MSEB had paid an average per unit cost of Rs 4.98 for power purchase quite below the 90 per cent availability as incorporated in the power purchase agreement (PPA).

MSEB sources told The Financial Express that in view of its “precarious” finances, MSEB restricted the power purchase at around 180 mw with a monthly fixed charges maintained at Rs 95 crore.

“The question of resuming power purchase from DPC does not arise at this point as the power purchase agreement has been rescinded since May 23 and the matter has been taken up at the Maharashtra Electricity Regulatory Commission (MERC),” sources said.

According to MSEB, it was managing the show until May 2000 when the per unit cost was ranging between Rs 3.78 and Rs 3.49, except Rs 4.85 (226.88 million units) in June 1999, Rs 4.49 (298.79 million units) in July 1999, Rs 5.79 (249.03) in October 1999 and Rs 4.37 (447.49 million units) in April 2000. Majority of these purchases were below 90 per cent availability.

“However, the per unit tariff suddenly skyrocketted to the level of Rs 25.51 in June 2000 following the hike in the naphtha prices in the international markets and thereafter it became an unmanageable show,” MSEB sources said.

In July 2000, MSEB’s outgo towards per unit tariff was Rs 7.81 (179.47 million units) which was reduced to Rs 6.81 (231.45 million units) in August 2000, and to Rs 5.10 (257.75 million units) in September 2000.

Curiously, the per unit tariff rose at Rs 6.90 (267.26 million units) in October, Rs 8 (179.02 million units) in December 2000 and Rs 21.06 (52.92 million units) in January 2001. The per unit tariff again fell at Rs 14.74 (75.04 million units) in February, Rs 9.34 (156.82 million units) in March and Rs 10 (128.46 million units) in April.

“Had MSEB purchased power at 90 per cent availability, the per unit tariff would have remained in between Rs 2.92 and Rs 5.21. The average per unit tariff would have been Rs 4.02,” sources said.