MSEDCL takes over SNDL area, staffers to be recruited as well

Nagpur: MSEDCL would take over SNDL area from midnight of September 8-9, energy minister Chandrashekhar Bawankule announced on Sunday evening at a press conference.
“SNDL had itself asked us to take over as it is incurring losses. It does not have any net dues towards us as it owes about Rs225 crore. We too have to pay the same amount to it,” he said.
Bawankule said that class-III employees of SNDL and its contractors would be taken on contract for one year. If class-II employees want to work for MSEDCL, they would also be recruited as class-III staffers with 20% more salary. SNDL has about 150 employees. There are about 800 more staffers working as its contractors.
The minister said MSEDCL had transferred three executive engineers, several deputy executive engineers, assistant engineers and line staffers to SNDL area. “We will ensure a smooth take over,” he added.
SNDL owes its vendors about Rs35 crore and employees are owed about Rs15 crore. Bawankule promised to clear the dues in six to eight weeks. “Consumers owe Rs70 crore to SNDL. This amount will be recovered and contractors and employees will be paid,” he said.
The minister said consumers of franchisee area had suffered as SNDL had not made any investment to augment power infrastructure. “There were problems of low voltage in Mahal and Gandhibagh areas. Many areas experienced tripping. SNDL was unable to provide new service connections. MSEDCL had provided the company Rs55 crore for infrastructure. On Sunday, we approved another Rs30 crore for SNDL area and in future we will sanction another Rs100 crore,” he further said.
Replying to a query, the minister admitted there were several complaints against SNDL. “We had appointed a two-member committee to enquire into the affairs of the company. On the basis of the enquiry report, we issued them three notices. They rectified 70 to 80% of their working and hence we did not terminate their contract.”
Replying to another query, Bawankule said SNDL had been successful in reducing distribution losses. “When they took over in 2011, the losses in franchisee area were 33%. Now they are 13.74%. As the losses are less than 15%, we no longer need a franchisee. MSEDCL will reduce the loss to 10%,” he said, adding the franchisees were needed in Mumbra-Kalwa and Malegaon as losses were over 50%.
After the press conference SNDL workers gheraoed the minister over non-payment of their salaries. They told him that salaries for August had not been paid. Bawankule told them that MSEDCL would pay them their September salaries and look into ways of clearing their dues.
TIMELINE
May 2011 | Spanco takes over three-fourth of Nagpur as power franchisee
September 2012 | Essel Utilities (SNDL) takes over from Spanco
April 2015 | Bawankule sets up enquiry committee against SNDL
May 2015 | MSEDCL takes over Civil Lines division over 24-hour blackout
June 2015 | MSEDCL hands back the division to SNDL
August 2015 | Enquiry committee submits report
September 2015 | MSEDCL issues notice to SNDL, asks it to improve working
August 2019 | SNDL asks MSEDCL to take over franchisee area
September 2019 | SNDL writes second letter urging take over
September 2019 | MSEDCL finally takes over SNDL area
BULLET POINTS
* SNDL does not owe anything to MSEDCL
* SNDL and its contractors have over 1,000 employees
* Class III and II staffers will be recruited by MSEDCL on one-year contract
* Consumers owe Rs70 crore to SNDL
* MSEDCL will recover amount and pay off SNDL vendors and employees
* Audit of SNDL accounts will be done
BOX
Don’t pay bills to SNDL
MSEDCL has appealed to consumers to write cheques in the name of the discom for paying power bills. If they pay in cash they should demand receipts issued by MSEDCL. Those consumers who pay their bills online should log on to MSEDCL’s website www.mahadiscom.in or pay through the discom’s mobile app. If any person seeks money for SNDL then consumers should call up MSEDCL control room (7875760070) or the nearest police station.