Arrears of Rs 30 crore; KSEB disconnects power supply to HMT

KALAMASSERY: KSEB disconnected the electricity connection of HMT, a central public sector undertaking, due to arrears of electricity charges of Rs 30 crore. The action was taken at 10 am on Tuesday. With this, the company's operations were severely affected. KSEB's action comes at a time when HMT is mired in a severe financial crisis. Employees have not yet received salaries for three months.

The action of disconnecting electricity, amidst hopes of the central government's revival package, will only add to the company's collapse. KSEB had earlier issued a notice demanding payment of Rs 14 crore in arrears till 2007. In the subsequent one-time settlement discussion, the arrears were revised to Rs 11 crore. Of this, it was agreed that Rs 8.5 crore would be divided as capital arrears and Rs 2.5 crore as interest. Both sides had also agreed that the interest could be paid in five instalments.

Officials said that Rs 8.5 crore was transferred to KSEB in March 2008 as per the agreement. The company was ready to pay the first instalment of Rs 50 lakh as interest next month, but KSEB proposed to transfer the land in lieu of the interest. The company had said that it was ready to provide the land if the head office approved it, but this was delayed due to disputes over pricing and procedural lapses. Union leaders alleged that KSEB unilaterally adjusted the Rs 50 lakh paid as interest as an advance towards electricity bills for the following months.

INTUC Vice President Linson and BMS General Secretary Sreejesh protested against the action of disconnecting HMT's electricity connection.