Maintaining that the “financial health” of “Mahavitaran” had deteriorated, Maharashtra Energy Minister Nitin Raut on Thursday urged the Centre for an immediate assistance of Rs 10000 crore to prevent the Maharashtra State Electricity Distribution Limited (MSEDCL as Mahavitran is known) “from slipping into coma”.

In a letter shot off to Union Energy Minister, R K Singh, Dr Raut said that Maharashtra State Electricity Distribution Limited (MSEDCL or Mahavitaran) had incurred huge financial losses due to Covid pandemic and was facing precarious financial situation and demanded immediate assistance of Rs 10000 crore to help the state electricity overcome the liquidity crunch.

He has said due to Covid-19, Mahavitaran which was the largest distribution company of India, was grappling with acute fund shortage. The lockdown period continued for almost 3 months and it still continued in major parts of Maharashtra.

Dr Raut said out that during the lockdown period industrial and commercial consumption reached to the bottom. The industrial and commercial consumption which amounted 60 percent of the revenue could not get realised during the period which put Mahavitaran in a precarious financial condition.

He said the industrial and commercial consumption was the main source of providing subsidized rates to residential and agriculture consumers, drop in its sale added to the financial woes of the Mahavitaran as the residential and agriculture consumption continued unabated. Rather domestic consumption showed rising trend during the summer due to heat and work from home, he averred.

“Almost all of the industrial and commercial consumption stopped during lockdown period. All the consumers were given time extension to pay their electricity bills. Thus, the realization of revenue almost halted in April and May; whereas, the power purchase costs (mainly Fixed), staff salaries, tax liability were not reduced,” the state minister said.