Rs 2,557.45 cr subsidy to MSEDCL; State makes book adjustments

 

 

Maharashtra Government has approved release of Rs 2557.45 crore due to Maharashtra State Electricity Distribution Company Limited (MSEDCL). However, instead of releasing the funds to the cash-starved State-run company, Government has decided to go for book adjustment exercise. In the notification issued by Department of Industry, Energy and Labour, dated February 21. The State has said outstanding tax and duty on sale of power is being adjusted against dues payable to the company. The amount of Rs 2,557.45 crore was part of the subsidy that State Government was to clear against the power supplied to agriculture and powerloom sector. For the year 2022-23, for agriculture power pumps’ use, State Government had earmarked sum of Rs 4,940.91 crore against the subsidy of which Rs 1,217.19 crore was pending for release plus Rs 1,200 crore of industrial sector.

Maharashtra Government had kept aside Rs 867.20 crore in the supplementary grants to clear the subsidy of agricultural pump. Also, Rs 1,350.48 crore was due of powerlooms in the State. In the supplementary grants, State had kept aside Rs 591.85 crore of which Rs 339.77 crore was approved to be paid to MSEDCL.

But, since MSEDCL’s financial position was bad, it could not clear the dues of electricity duty and tax to State. The same is collected from consumers and paid to State Government. Hence, against the tax amount due from MSEDCL, State went for book adjustment to ensure that either books show clearing of the amount. For the current financial year, an amount of Rs 468,58,99,400 was outstanding with MSEDCL against electricity duty for the period of July to September 2022. Similarly, an amount of Rs 108,34,00,000 was to paid to State on account of tax on electricity sales for the same July to September 2022 period.

For the period of October to December 2022 an amount of Rs 290,27,00,600 was also outstanding with MSEDCL and Rs 1350,48,00,000 was due as to sales tax on electricity. The GR also lists a sum of Rs 104,61,99,400 on account of electric duty from October to December, Rs 105,94,00,000 on sales tax and Rs 129,21,00,600 again for electricity duty. Thus MSEDCL share of contribution that was to be transferred to State was Rs 339,77,00,000.