CM Fadnavis directs Finance Dept to release subsidy required for Mahavitaran at earliest

Mumbai, July 17 (IANS) Amid rising arrears of the state-run Maharashtra State Electricity Distribution Company (Mahavitaran) towards electricity bills from agriculture and other consumers, Chief Minister Devendra Fadnavis on Thursday directed the Finance Department to distribute the subsidy to Mahavitaran as soon as possible.  

He noted that if the Energy Department plans properly regarding power generation and expenditure, it will be possible to distribute electricity to the consumers at a reasonable rate. He was speaking at the review meeting of the Energy Department held by him. 

Minister of Non-Conventional Energy, Atul Save was also present at the meeting.

CM Fadnavis reviewed the funds required by the Energy Department for the year 2025-26, electricity payment arrears of various departments, current status of grant distribution, provision of funds for various schemes, and action taken through Maharashtra Energy Development Agency (MEDA).

The Chief Minister said: “The Finance Department should immediately check all the details in the detailed proposal requested from the Finance Department to implement the scheme under the Energy Department and distribute the necessary funds on time. To improve the financial condition of the power distribution system in the state, changes should be made as per the rules where necessary. Action should be taken to recover the arrears on time. Care should be taken to ensure that the gap between the financial year funds approved to Mahavitaran and the deficit does not increase.”

He said that funds are required to effectively implement the Chief Minister Baliraja Free Electricity Scheme and PM Kusum Scheme. Therefore, the Finance Department should consider the demand submitted by the Energy Department. It is also necessary to take appropriate measures to determine the rates that will provide relief to the general electricity consumers.

Earlier, CM Fadnavis said that Industrial electricity tariff in Maharashtra will be the lowest compared to other states. According to the new tariff, Maharashtra's tariff is currently Rs 8.32, which will come down to Rs 7.38 in the next phase. 

In comparison, Tamil Nadu's tariff is Rs 9.04, Gujarat Rs 8.98 and Karnataka Rs 7.55. Industrial electricity tariff in Maharashtra will remain low in the next few years. Also, the tariff will not increase due to the tariff true-up process, he added. CM Fadnavis, who hold the energy department, said that electricity procurement will now be done through the 'Merit Order Dispatch' method. 

Due to this, electricity is purchased from private companies at cheaper rates. Also, the cost of purchasing electricity has come down significantly due to the use of solar, wind and battery storage. Since this is a long-term (25-year) contract, electricity prices will remain stable, he added.

CM Fadnavis said that in the previous tariff petition, industrial and commercial tariffs were reduced by putting a burden on residential consumers. But due to objections to this raised by the state run power distribution company Maharashtra State Electricity Distribution Company (Mahavitaran), now tariffs have been reduced in all categories during the recent order released by the Maharashtra Electricity Regulatory Commission.

“About 70 per cent of consumers consume electricity below 100 units and they will get a 26 per cent rate cut. Along with this, there will also be a rate cut on consumption above 100 units,” he said. 

“Significant changes have also been made in the solar pump schemes for farmers and a new scheme has been introduced for booster pumps. The cost of the single pole scheme is only Rs 15,000. Farmers are ready to be provided with 10 HP horsepower solar pumps as per their requirement. If there is any complaint in this regard, it is being resolved on the Solar Unified Portal,” said the chief minister.

CM Fadnavis informed that smart meters will be installed in the agricultural sector to control electricity consumption. This will make it possible to understand exactly how much electricity is used for agriculture. This will allow accurate measurement of electricity consumption in the agricultural sector and will help in formulating future policies, he added. 

According to the chief minister, a separate solarisation proposal has been prepared for lift irrigation. He mentioned that provision of electricity through conventional methods in dark zones will also be considered.

--IANS

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