Maharashtra Power Rates to Drop 1.2% Yearly for 5 Years, Says CM Fadnavis

In his reply to a question raised by member Chetan Tupe regarding the increase in electricity bills due to reduced benefits from solar energy, CM Fadnavis, who holds the energy department, said that the Mahavitran has achieved the distinction of becoming the largest company in the country by crossing the Rs 1 lakh crore annual revenue milestone. Due to the increasing use of solar energy, industries in the state will now receive up to a 25 per cent discount if they consume electricity during "Solar Hours" (9:00 a.m. to 5:00 p.m.).

Fadnavis announced there has been a shift in discount policy, correction of regulatory errors, competitive industrial rates, relief for farmers and battery storage incentives. Previously, discounts were provided for electricity usage between 12:00 a.m. and 6:00 a.m. because of surplus power at night. However, with the surge in solar power, availability is now highest during the day. Consequently, the state government has shifted its policy to offer a 25 per cent discount to those using power between 9:00 a.m. and 5:00 p.m., significantly benefiting industries.

The Chief Minister said that the Maharashtra Electricity Regulatory Commission (MERC) had made technical errors regarding power purchase estimates and capital expenditure. This could have led to the rejection of approximately Rs 80,000 crore in energy charges and Rs 55,000 crore in infrastructure costs for Mahavitran. The state government pointed out these errors to the Commission, preventing massive losses for the company and shielding consumers from potential price hikes.

According to CM Fadnavis, industrial electricity rates in Maharashtra have been reduced. Currently, the rate is Rs 8.32 per unit, which is expected to drop to Rs 7.38 per unit by 2029-30. Compared to Tamil Nadu (Rs 9.35) and Gujarat (Rs 8.43), Maharashtra's rates will be highly competitive and eventually the cheapest in the country. MERC had initially proposed a 30 per cent hike for agricultural consumers while showing lower industrial rates. After the government objected to this discrepancy, the Commission withdrew the old order under 'suo motu' powers and corrected it, reducing the burden on farmers.

Fadnavis stated that those generating captive solar energy can access discounted power 24/7 if they use Battery Storage Systems. With battery storage costs dropping to Rs 2.80-Rs 2.90, he urged industries to adopt this technology.

The CM further noted that massive investments are being made through the 'Mukhyamantri Saur Krishi Vahini Yojana' and infrastructure strengthening. Industrial electricity demand has grown by 23 per cent over the last three years, which he cited as a clear indicator of large-scale industrial influx into the state.

- IANS