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ESCOMs get tough with local bodies

Jaideep Shenoy

MESCOM has started disconnecting power supply to gram panchayats that defaulted on bills


  • Gram panchayats and urban local bodies owe Rs. 800 crores to ESCOMs
  • Five ESCOMs have been asked to recover dues
  • Executive officers of taluk panchayats directed to take necessary steps

    MANGALORE: Gram panchayats and urban local bodies in Karnataka are sure to get a shock treatment if they do not pay their dues to Electricity Supply Companies (ESCOMs) at the earliest. The nearly 5,600-odd gram panchayats and various urban local bodies in the State owe Rs. 800 crores cumulatively to ESCOMs.

    The five ESCOMs - Bangalore, Chamundeshwari, Gulbarga, Hubli and Mangalore - have been asked to recover dues. Even the Ministry of Rural Development and Panchayati Raj, in its letter dated December 16, 2005, and addressed to chief executive officers of zilla panchayats has instructed the officials to take necessary steps to recover dues.

    Senior officials in Mangalore Electricity Supply Company told The Hindu that it has begun to disconnect power supply to defaulting gram panchayats since early this week. This has had the desired effect with a few gram panchayats coming forward to repay their dues. A few others have sought time.

    Bharat Lal Meena, Chairman of ESCOMs in Karnataka told The Hindu that no specific instructions have been given to ESCOMs in this regard. "There is no need for us to give them (ESCOMs) any direction, instruction,'' he said. "The Government has released grants to gram panchayats and it is their duty to repay their dues to ESCOMs,'' he said.

    Mounting dues

    With only five to 10 per cent of the 5,600-odd gram panchayats in the State repaying dues, dues are bound to mount. The ESCOMs will have to take necessary steps to collect what is owed to them. Failure to do so will adversely affect the financial health of the companies, he said.

    Chief Executive Officer of Dakshina Kannada Zilla Panchayat A.M. Kunjappa said gram panchayats have been repeatedly directed to repay their dues to MESCOM. He said executive officers of taluk panchayats have been advised to take steps under the provisions of Panchayat Raj Act to recover dues.

    Gram panchayats get an annual grant of Rs. 5 lakhs, which is released equally in four quarters starting April each year. Mr. Kunjappa said the Government had released grants for first three quarters for 2005-06. Errant gram panchayats have bore the brunt of their financial indiscipline with ESCOMs disconnecting power supply to water supply schemes and streetlights.

    On reluctance of gram panchayats to repay dues, he said most gram panchayat presidents feel that they will be left with little or no funds to undertake development works after clearing their power bills.

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