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As state government agencies and Maharashtra Electricity Regulatory Commission (MERC) take their own time in deciding on the power supply to Mihan units, many owners are surviving on diesel generators or solar powers. Diesel-fired power is very costly and the units are desperately hoping that Maharashtra Airport Development Company (MADC) provides them cheap power through open access as soon as possible.

However, this is likely to take a few weeks. Tanaji Satre, vice president-cum-managing director of MADC, said that the company had filed a petition in MERC, whose hearing would be held next week. "MERC has to approve our power purchase plan. As soon as it issues an order we will float tenders," he said.

Manohar Bhojwani, president of Mihan Industries Association (MIA), said that MERC should immediately clear the petition. "It is filed by a government agency and we are incurring huge losses. The commission should take this into account," he said.

On the other hand, MIA has also filed a petition in MERC demanding that Abhijeet Group be forced to supply power to Mihan. MERC is repeatedly postponing this petition. Once Mihan units start taking power through open access, Abhijit Group will get INR 1,800 crore as per the agreement between the two companies. Abhijeet wants this amount even though it had kept Mihan in dark for three months. MIA has demanded CID inquiry against MADC and Abhijeet. Around fifteen units fed up of the quarrel between MADC and Abhijeet had taken power supply from MSEDCL even though the rates were far higher than the promised one of INR 2.97 a unit. However, some ten units have not applied for MSEDCL connections because they will have to pay the distributor a large amount as security deposit.

Bhojwani said that delay in availability of cheap power was deterring investors. "Many companies that had planned to set shop in Mihan are delaying their plans until power supply is assured. However, Infosys will start construction work by this month end as it will take power from MSEDCL and once the construction is over it will run its unit on solar power,". He further said that there were a lot of vacant plots in Mihan as the unit owners were not starting operations. "We can't say anything to them because they will ask where is the power supply," he said.

Abhijeet Group had closed down its power plant because of low demand and unviable tariff. The company had told MADC that it could not sell power at the rate of INR 2.97 per unit because it did not get coal linkage and was forced to buy coal from open market, which was far costlier.

Source-On Request