Bhubaneswar, Aug. 30: For power distribution companies, charity doesn’t begin at home.
Though these companies have been collecting dues from consumers, they have failed to pay the state-run Grid Corporation of Odisha (Gridco), which sells them power.
Official sources said the total dues of the private distribution companies — the Central Supply Electricity Utility Service (Cesu), Western Electricity Supply Company (Wesco), Northern Electricity Supply Company (Nesco) and the Southern Electricity Supply Company (Southco) — have touched Rs 4,413.50 crore.
Of the four companies, Cesu is the biggest defaulter with dues standing at Rs 2,211.57 crore. The other three taken together owe Gridco Rs 2,201.93 crore.
The babus running Gridco are grumbling. “How can an organisation run if such big amounts remain outstanding? Our own loan has touched Rs 4,908.80 crore,” said a senior official of the public sector undertaking.
Gridco’s commercial wing head P.K. Pradhan said: “We are constantly writing letters to the private distribution companies to clear their dues. But, we can’t stop supplying power to them as it would trigger chaos. We are even taking loan to keep supplying power.”
However, Cesu chief B.C. Jena said: “We are regularly clearing our current dues, but arrears, accumulated over the years since power reforms were initiated in the state in 1998, are yet to be wiped out.”
Wesco managing director Gopal Reddy said he had already written to Gridco requesting that the company be allowed to clear its dues in phases.
The other two distribution companies had also promised to clear the dues.
Jena sought to defend his company, saying that with 85 per cent of the earnings going into purchase of power, there was hardly any money left for system improvement.
General secretary of the Nikhila Odisha Bidyut Shramika Karmachari Sarat Mohanty said: “Neither the Odisha government nor the private companies have invested money for system improvement in the past one decade. But, people were being made to pay for power at high rates.”
The tariff has gone up by 57 per cent this year for even the poorest section of consumers using power between 0 to 50 units.
Alleging that both the government and the private companies have gained financially from reforms but have done little either to improve the system or to bring the tariff down.
Energy minister Arun Sahu said: “By introducing reforms in power sector, the state is now saving Rs 1,000 crore towards subsidy and earned Rs 458.06 crore as electricity duty per annum. The power companies have also spent Rs 1,341.17 crore to check distribution losses.”