MSEB cuts supply to VIP client, burns fingers

But there were no congratulatory messages for taking bold steps. Instead, a call from Mantralaya saw them turning the switch on in precisely three hours without the society paying a paise or giving an undertaking that it would do so. Because, the society is controlled by Union Minister of State for Finance Balasaheb Vikhe-Patil.

MSEB Chairman Yeshwant Bhave confirmed the incident: “Since it was in arrears, we disconnected the power supply. However, the same was restored within a few hours. We are sure, the society will clear the arrears at the earliest,” Bhave said.

From acting tough against the society to hoping it would see reason was a quick change of heart for Bhave but then the story behind it is nothing unusual. Vikhe-Patil’s son, Radha Krishna, who is now the chairman of the society, shot off letters to the Chief Minister and the Energy Minister protesting the MSEB’s decision and soon the latter had to eat humble pie and restore supply.

The arrears dispute is as old as the history of the Mula Pravara society which was set up in 1971 by Vikhe-Patil after the Centre decided to encourage cooperative societies in the power sector, particularly for distribution. While the board was supplying power to the society at the rate of 92 paise per unit, the society was repaying the board at the rate of only 28 paise. As a result the arrears mounted to Rs 600 crore.

The board used to serve routine notices to the society for recovery to no effect. When Radha Krishna took over the reins of the society in 1994, he collected data from all the 36 cooperative electric supply societies in the country, none of which paid their state boards more than 32 paise per unit. Accordingly, he told MSEB that he was willing to pay 32 paise. By the time the board took note of the plea, Vikhe Patil became Minister for Agriculture under the Sena-BJP rule and MSEB acquiesed and waived Rs 500 crore arrears.

Meanwhile, the government also appointed a committee headed by the then Energy Secretary Asoke Basak to arrive at a viable rate. After hearing the arguments of the society and MSEB, Basak fixed the rate at 50 paise per unit.

“On the basis of the revised rates, the society was in arrears of Rs 72 crore. Since it failed to clear the same, its power supply was disconnected. I don’t know why it was restored,” rued a senior official.

Radha Krishna told this paper that it was patently unjust of the MSEB to snap supply when the matter was subjudice. He said since his society distributed power to about hundred villages in the Mula and Pravara tehsils (of Ahmednagar district), they had to take the case to the chief minister for urgent intervention.