Office of the Chief Engineer (Commercial) Maharashtra State Electricity Board "Prakashgad", Bandra (East), Mumbai - 400051. Tel.:(P) 26474753 (O) 2647411 Fax: (022) 26472366

REF.: PR – 3 / SUBSIDY / 33008                                                              DATE:14/10/2003

DEPARTMENTAL CIRCULAR (COMMERCIAL) NO. 688

Subject:            Withdrawal of excess Delayed Payment Charges & Interest charged to agricultural & powerloom consumers during the year 2002 – 03.

            As proposed by the State Government & approved by the Maharashtra Electricity Regulatory Commission, general subsidy in tariff for the financial year 2002 – 03 is being passed on to the agricultural & powerloom consumers respectively. The loss of revenue to the Board on this account has been compensated by the State Government by way of book adjustment of the various amounts including electricity duty, payable by the Board to the State Government. The amount of electricity duty considered by the State Government for book adjustment was due & payable by the Board to the state Government during the year 2002 – 03, the State Government has not claimed interest on the said amount, even though the Board has not made payment. Further, as per the instructions / guidelines issued vide letter no. PR – 3 / Tariff / 34652 dated 16/09/2003, the agricultural & powerloom consumers were permitted to pay the energy bills as per the subsidized tariff prevailing in the previous year.

            In view of the above, the Board in its meting dated 26/09/2003 has accorded approval as follows:

a)                              The agricultural & powerloom consumers, who so ever have paid the energy bills during the year 2002 – 03 at least at the subsidized tariff prevailing in the year 2001 – 02 (as informed vide letter no. PR – 3 / Tariff / 34652 dated 16/09/2003) shall not be charged delayed payment charges for less payment of energy bill, irrespective of whether or not such consumers have previous arrears pertaining to the period prior to 2002 – 03,

b)                              Similarly, interest charged to agricultural & powerloom consumers during the financial year 2002 – 03 shall be revised and these consumers shall be charged interest after deducting the amount of general subsidy in tariff from the arrears, assuming that the amount of subsidy was received from the State Government in each month.

            Accordingly, the IT Department is being instructed suitably to pass on the credit on account of withdrawal of delayed payment charges & interest as above through the ensuing energy bill and Director of Accounts is also being requested to separately issue accounting instructions to ensure proper accounting of the withdrawal of delayed payment charges & interest pertaining to the financial year 2002 – 03.

Technical Director (EHVP – COM)