The cash-strapped state government is in a tizzy over getting funds for supplying electricity. This year, the government has to pay Rs 30,000 crore to the MP Power Management Company that functions under the energy department. In its Budget, the government has made a provision for Rs 15,000 crore, but it has no funds to pay the amount.
As the government does not have funds to shell out for giving subsidy on electricity, the Power Management Company is unable to pay to the firms that supply power. For this reason, supplying electricity is going to be a major problem for the government in the coming days.
The government is supposed to pay Rs 6,500 crore to the Power Generating Company. Besides, it has to give a lot of money to the National Thermal Power Corporation and other power-generating firms.
Chief Minister Shivraj Singh Chouhan held discussions with officials about subsidy on electricity bills. At the meeting, it came to light that the government has to pay a huge sum to the power companies. Because of the poor fiscal health of the state, the government had clearly told the officials of the energy department that they should find out ways to pay the money to the power firms by taking loans.
