Cost Surge for MSEDCL: Pune Municipal Corporation Cuts Discounts on Road Restoration
Pune, 21st November 2023: Road excavation is set to become a more expensive affair for the Maharashtra State Electricity Distribution Company Limited (MSEDCL), as the Pune Municipal Corporation (PMC) opts to trim the discount traditionally extended to the power board. Previously, PMC levied approximately 25% of the total charges on the state power utility, charging private companies around Rs 12,000 per running meter.
Under the revised arrangement, MSEDCL will face a 50% reduction in road restoration charges, aligning with the rates applicable to all other government and semi government agencies. Currently paying around Rs 2,500 per running meter, the power board will see a significant increase to approximately Rs 6,000 per running meter post-revision.
The decision to curtail the discount stems from the escalating costs associated with restoration materials. A senior PMC official indicated that the proposal to augment the charges has been presented to the standing committee, with implementation slated to commence upon approval.
PMC’s data reveals that approximately 5,000 running meters of road excavation have been carried out for MSEDCL since the inception of the current financial year. The civic administration has amassed around Rs 1.2 crore from MSEDCL in this regard.
“After approval, we will communicate the revised charges to MSEDCL. The administration aims to standardize road restoration charges for non-private entities by minimizing the existing discount,” stated Sahebrao Dandge, a senior official of PMC’s road department.
