| Date: |
10-07-2015 |
| Subject: |
MADC reduces Mihan power tariff |
NAGPUR: Mihan industrialists have again heaved a sigh of relief as Maharashtra Airport Development Company (MADC) has reduced the power tariff back to the level promised by chief minister Devendra Fadnavis.
The CM had promised a rate of Rs 4.39 per unit after BJP-Shiv Sena government came to power. The units got power at this rate for a few months but the rate then went up to Rs 5.42 per unit in April and May. Now, it has returned to Rs 4.39 per unit.
MADC has been able to reduce rates because MSEDCL is supplying power to it at Rs 3.25 per unit on short-term basis. Till now, MADC was buying power from Indian Energy Exchange (IEX) on day ahead basis. The rates in IEX had increased because of summer demand.
Industrialists have welcomed the development. Manohar Bhojwani, president of Mihan Industries Association (MIA), told TOI, "It is a relief but MADC must explore ways to bring down the tariff further."
The present rate is nowhere near the rate promised initially, which was Rs 2.97 per unit. This promise was made on the basis of Abhijeet Group's power plant in Mihan. However, the plant did not get coal linkage and its tariff was far higher. Moreover, as the power demand in Mihan was far less than envisaged, Abhijeet did not find it economical to run even one 60 MW unit of the plant.
An industrialist on the condition of anonymity said that while the reduction in rate was welcome, the state government should ensure that there were no more flip-flops. "Mihan as a brand has badly taken a hit. The sentiment among investment has improved after Fadnavis became the CM but if there are anymore increases in power tariff, the outlook will again turn negative," he said.
In 2014, Mihan did not have power supply for months and units had to either switchover to MSEDCL power supply or run their diesel generators. MSEDCL's power was far costlier than the promised rate of Rs 2.97 per unit. However, diesel power was even costlier. It was only after the present government came to power that the power problem of the SEZ was solved to some extent.
MSEDCL is supplying power to MADC at Rs 3.25 per unit, which is a reasonable rate. However, it is only a short term arrangement. It is only after MADC signs a long term agreement for power supply with a supplier that the power problem of the project can be considered to be solved.
Source : timesofindia.indiatimes.com
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