Pune: The Maharashtra State Electricity Distribution Company Limited (MSEDCL) is yet to clear power bills worth Rs 308 crore for electricity purchased from cogeneration units of 37 sugar mills, Pudhari reported.
The Maharashtra State Cooperative Sugar Factories Federation has urged the state government to issue orders to clear these payments to the mills.
According to the federation, the demand was raised during a recent joint meeting held at the state secretariat to discuss issues related to the sugar industry.
The federation said the power tariff for cogeneration has been fixed between Rs 4.50 and Rs 4.99 per unit, which it claims is not viable for the industry. It also pointed out that if the pending electricity dues of farmers are not recovered, a five per cent deduction is made in the tariff.
However, the federation said recovery of farmers’ pending power dues is not possible as the state government has already implemented the Chief Minister Baliraja Free Electricity Scheme 2024, under which such recoveries are not being carried out.
The federation further said that deductions from the Fair and Remunerative Price (FRP) in this manner are illegal under the Sugarcane Control Order, 1966, a point that was also raised during the meeting with government officials.
It added that despite problems such as limited power availability and load shedding in the state, the sugar industry responded to the government’s call by setting up costly cogeneration projects. These were established with support such as sugarcane purchase tax exemption, share capital contribution, and a 13-year power purchase assurance from MSEDCL.
However, the federation said it has now become difficult to continue operating these power generation units due to the current situation. It also pointed out that sugar mills in Uttar Pradesh are increasingly choosing to sell bagasse instead of producing power under similar circumstances.
