Small towns 'powerless' as Gujarat civic bodies struggle to pay bills

VADODARA/AHMEDABAD/SURAT/RAJKOT: Darkness steadily swallowed street by street across towns for about a month as state-run power distribution companies (discoms) and the cash-strapped municipalities wage a war over pending electricity bills for years together.
According to an official in the Madhya Gujarat Vij Company Ltd (MGVCL), 35 municipalities owed the company Rs 82 crore till January 31. And this time, the discoms seem to be in no mood to let dues spill over to the next financial year.
As punishment for huge pending bills, power connections of streetlights or offices are being snapped. The end result leaves citizens groping their way home in the dark.
Sources in discoms say only a handful of municipalities are able to pay their power bills within deadlines every billing cycle. Most face difficulties in paying discoms regularly and several have amassed dues running into crores of rupees.
Almost all municipalities have dues of varying amounts. After we sent them notices in the recent past and disconnected power supply for streetlights, they have started clearing dues partially," an official said. The power supply of Godhra, Balasinor, Borsad and some other municipalities were disconnected to ensure payments.
Of the 19 municipalities in south Gujarat, the Dakshin Gujarat Vij Company Ltd (DGVCL) is facing payment issues in Bharuch and Narmada districts. "All others in south Gujarat are regular in bill payment," said a DGVCL officer.
In Saurashtra and Kutch, the Paschim Gujarat Vij Company Ltd (PGVCL) is aggressively demanding the outstanding bills from civic bodies and have cut power for water supply of around 20 municipalities in past one month including Morbi, Anjar, Bhuj, Botad and others. "We restore power only after partial payment is done," PGVCL's MD V J Baranwal told TOI.
About 62 municipalities owe Rs 316 crore to PGVCL since 2014 up to end of December 2022. In 2014 too, a settlement was arrived in which PGVCL waived the interest of past outstanding and Gujarat Municipal Finance Board and the urban development department paid the outstanding principal amount.
In north Gujarat, Uttar Gujarat Vij Company Ltd (UGVCL) has outstanding dues of municipalities amounting to Rs 58.75 crore as on January 31. A senior official said, "We have written letters to all the chief officers of municipalities including Prantij, Sanand and others informing the position of arrears with a copy to the RCM."
On the other hand, the municipalities argue that recovery of taxes and rate of various taxes and charges are not enough to meet their financial needs. "The dues have accumulated over several years now. There is cash crunch owing to unpaid taxes," said chief officer of Balasinor municipality Aakash Patel.
Amit Chavda, president of Bharuch municipality said the payment for electricity got delayed over administrative lapses and staff negligence. "After payment was done, there are no other issues now," he added.
(with inputs from Nimesh Khakhariya, Yagnesh Mehta and Parag Dave)