As a result, the corporation, set up in 1996 in place of the Orissa state electricity board, has lost over Rs 300 crore. This has also posed a serious threat to the ongoing process of restructuring of the power sector in the State.

According to Nikhila Orissa Bidyut Sramik Mahasangha (NOBSM) general secretary Sarat Chandra Mohanty, illegal tapping of electricity is rampant all over the State and by all sections of people as the Gridco is yet to take some drastic action against this menace. Those found guilty of stealing power can find themselves behind bars for three years. However, this fear too has not stopped the offenders.

Mohanty alleged that it were not just the shops and business establishments in the cities which enjoy electricity free of cost, but also hundreds of villages. "In some places, the theft takesplace with active connivance of corrupt officials, while in other areas authorities are reluctant to take any action against the offenders fearing physical assault," he noted.

According to Gridco's Cuttack circle superintending engineer Kruttivash Patra, more than 48 per cent of the 60 mw power supplied to this commercial city was daily tapped illegally.

Under a special drive undertaken in the city, over 1,500 hooks had been converted into regular connections in the past six months, he said adding that various Government and non-government organisations owe about Rs 44 crore to the Gridco's subsidiary company CESCO which was incurring Rs 1.9 crore loss every month.

The Utkal Chamber of Commerce and Industry the apex body of industries in Orissa, is concerned over the power problems, including frequent interruption in supply and low voltage. It has urged the Gridco as well as the Orissa Electricity Regulatory Commission to take urgent remedial measures for ensuring uninterrupted and quality power forreasonable rate.

Mohanty held "mismanagement" and "political interference" partly responsible for the present situation. Last year, Gridco director C Ramkrishnadu and two other senior officials were arrested and placed under suspension by the State Government after the Vigilance Department unearthed large-scale bungling and financial irregularities in different divisions of the corporation.

Special squads have also been formed in each electrical division to check power theft. Though scores of people have been taken into custody on charges of theft, situation has not improved. Sources say several factors are to be blamed one being the need to urgently replace nearly 650,000 dead meters in the State.