By Our Correspondent in Bhubaneswar, February 23, 2015

Odisha government seems to have been caught between devil and deep sea on the issue of tariff hike justified by utilities and vehemently opposed by consumer groups. Nor it seems to be keen on derailing the ongoing process of distribution of power.

Interestingly, the government has admitted that the condition of distribution network in the state has worsened to the hilt with a threefold increase in consumer strength during last 15 years while the required investment to beef up the transmission and distribution is conspicuous by its absence.

Still worse is the fact that the government has been refusing to come out with a White Paper on the present status of power scenario in Odisha, which pioneered reforms in power sector in the country in the mid-50s.

This becomes clear from a report submitted by the government in the budget session of the Assembly. The government virtually evaded the issue of disengagement of private Discoms as demanded by the Opposition and consumer groups for ‘failing to fulfill the terms and conditions with the agreement they had signed with the state government’.

Replying to a special mention by the leader of Opposition on the power scenario, leader of the Opposition, Narasimha Mishra, the state government has clarified that it is not opposed to audit. But at the same time, it put the onus on the union power ministry saying that the decision should come at the national level and the union power ministry should give requisite permission for the audit of the Discoms by the Comptroller and Auditor General of India [CAG].

The Opposition and consumer groups have been citing a provision in the Agreement saying that the Discoms were required to invest in order to beef up the distribution network, but the Companies have violated the terms and conditions by not investing. Consequently, the distribution network is on the verge of imminent collapse.

They had also alleged that the government does not want to disengage Reliance managed three Discoms from distribution business nor it is interested to order for audit of mismanagement in power sector.

On 11th this month, the Opposition leader had demanded cancellation of license of Discoms, recovery of arrears from them, audit by CAG and a white Paper before the Assembly on the present status of power scenario. But, the government has kept quiet on these issues. Even, the government has not mentioned a single word in its reply regarding collection of outstanding dues from Reliance.

They also accused the Discoms of collecting huge bills rigorously without spending a rupee.

Besides, they alleged that the Reliance managed Company also has managed to obtain a favorable verdict from ATE to collect Rs 4200 crore showing huge Aggregate Technical Loss [ATC] loss.

Though the state government had expressed its strong desire to challenge the ATE order in Supreme Court, it has not come out with any definite reply. Not it has made it clear whether it would bear the burden on its head or leave the consumers to pay from their pockets, they remarked.

As per the estimate of department, the power tariff will be hiked by Rs. 5/- per unit which means a threefold increase in power bill if the ATC’s order is implemented.