Maharashtra power situation to improve: CM

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October 31, 2005 17:57 IST

Assuring that next Diwali would witness less load shedding, Maharashtra Chief Minister Vilasrao Deshmukh on Monday said the newly-formed Ratnagiri Gas and Power Private Ltd would generate around 2500 MW power to meet the present shortfall.

The first block of RGPPL is supposed to start generating 750 MW of power at Dabhol power plant in Ratnagiri by May next year and it would eventually utilise its complete capacity of 2700 MW by October-November 2006, Deshmukh told PTI in an interview on the eve of completing one year in office.

Deshmukh disagreed with reports that Maharashtra was lagging behind other states on power generation front thereby slowing down industrial progess.

The power scenario would improve considerably next year and the shortfall of about 2500 MW to 2600 MW would be nearly overcome by then, he said.

Deshmukh justified his government's decision to stop giving free power to farmers saying the farmers had become negligent as they were getting free power and this resulted in 700 MW power going waste.

The government therefore decided to categorise farmers and provide power to small and medium farmers at a minimal rate of 20 paise per unit of power, the Chief Minister said.

On account of free power to farmers, the government was already giving subsidy of Rs 2400 crore (Rs 24 billion) which had now being brought down to Rs 1600 crore (Rs 16 billion) by categorising farmers for giving power subsidy, he said.

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