Power: Hundreds of crores in unrealised revenue

May 27, 2021 73 Views No Comment

As Nagaland govt seeks fiscal aid, the State’s energy sector has over Rs 300 cr arrears from consumers

Imkong Walling
Dimapur | May 27

The Nagaland State government has been admittedly dependent on dole-outs from New Delhi. The COVID-19 pandemic further exposed the wobbly fund situation, the government struggling to gather resources and even having to seek the aid of the Confederation of Indian Industries to procure some Rs 64cr worth of vaccines for the 18-44 years age group.

But as the government plays the ‘poor-revenue-generation-State’ card, one department alone has unrealised internal revenue running into hundreds of crores that could well have alleviated the fund situation.

As per data gathered through the Right to Information Act, the Department of Power, Nagaland (DoPN) had over Rs 307cr in potential revenue but in the form of arrears from consumers, as on March 2021, under its 12 divisions— Dimapur, Chümoukedima, Kohima, Peren, Phek, Wokha, Mokokchung, Changtongya, Kiphire, Mon, Tuensang and Zunheboto.

Dimapur, Kohima and Chümoukedima were the top 3 defaulters with pending dues of Rs 121,43,26,248; Rs 96,35,17,321 and Rs 41,53,26,503, respectively. The amount due from Tuensang was Rs 10,01,16,323; Mon: Rs 9,44,18,779; Changtongya: Rs 6,00,48,021; Mokokchung: Rs 5,46,52,268; Zunheboto: Rs 4,93,37,699; Peren: Rs 4,45,90,195; Phek: Rs 3,61,10,309; Wokha: Rs 2,85,38,125; Kiphire: Rs 1,14,22,800.

As on March 2021, the State had 3,00,619 metered consumers.

Who are defaulting?

Now, the question is who has contributed to this enormous deficit? While not an exhaustive list, the arrears data, point to almost all sectors of the State apparatus, including the government and public, being equally blameworthy.

‘Domestic’ consumers topped the list of bill defaulters with this category accounting for Rs 205,44,73,898 of the cumulative arrears.

The amount overdue from the State government agencies/departments, along with the courts, totaled Rs 17,42,91,677.

Central government establishments and public sector banks had dues amounting to Rs 1,60,47,185, while a total of Rs 51,298 was due from telecom related private firms. Paramilitary units had Rs 1,17,34,759 due.

The period of default varied from consumer to consumer, ranging from approximately 2 months to as long as over 4 years.

As far as the rules go, the Indian electricity guidelines mandate disconnection of supply to consumers defaulting to pay for two consecutive months.

In a report published by The Morung Express in April this year, based on the RTI replies, as many as 27 residential quarters allotted to legislators in Kohima had pending power dues amounting to over Rs 36 lakh.

Reasons attributed

The RTI application also sought from the DoPN the reasons/causes that have contributed to the accumulation of arrears and the stumbling blocks preventing the department from collecting electricity dues.

Regarding electricity as a free welfare service and “non-payment” by consumers, since the inception of the department, was attributed as the primary reason for arrears accumulating. It said, “Social factor/non progressive attitude of the defaulting/unscrupulous consumers in considering electricity as a welfare service and not as an essential commodity which needs to be paid for as consumed.”

Source: https://morungexpress.com/power-hundreds-of-crores-in-unrealised-revenue