Addressing a press conference, Federation's working president Mohan Sharma demanded that the State Government should bear the entire financial burden of free power supply to farmers as the MSEB, which is passing through a grave financial crisis, would be unable to bear the additional cost.

He blamed the successive state governments for pushing the MSEB to the brink by forcing it to supply power to the farm sector at heavily subsidised rates. At present, the MSEB is supplying electricity to farmers at an average rate of 24 paise per unit thereby incurring a loss of Rs 1.64 per unit. In addition, a major part of its revenue is utilised in repayment of loans. In such a situation it would not be proper on the part of the State Government to force the MSEB to bear the additional burden of supplying freeelectricity to farmers, he argued.

Listing another reason for the Federation's opposition to the government move to supply free electricity, Sharma said a majority of cultivators using power pumps to irrigate their farms are rich farmers who own huge lands covered under orchards or cash crops like sugarcane. The Federation is opposed to extend free electricity to this class of farmers, Sharma said and added that the government should exclude them from the scheme.

If the MSEB is asked to bear the entire burden, then it would be left with no other alternative but to increase the power tariff of domestic and industrial consumers. Pointing out that the MSEB has already increased the tariff twice in the last three-and-a-half years, the Federation leader said the moot point is whether it is advisable for the MSEB to go in for another major tariff hike.

In reply to a question, Sharma said the bill collection from the farm sector is just about 6 per cent of MSEB's total revenue which was about Rs 9,407 crore in1997-98. It has remained so low even after 1,000 times hike in power consumption by the agricultural sector in the last 35 years because of concessional power supply.

About the huge arrears and undetected power thefts, Sharma said the MSEB is yet to recover arrears mounting to over Rs 2,700 crore while the losses on account of power thefts are estimated to be about Rs 750 crore. The recovery of huge arrears and steps to check power thefts would certainly improve the Board's financial position. Even then it should not be asked to bear the entire burden of supplying free electricity supply, he said. The Federation leader also claimed that eight other major organisations of MSEB employees are supporting the Federations viewpoint.