Maharashtra Chief Minister Devendra Fadnavis informed the Legislative Assembly that the state-run power distribution company Mahavitaran will witness a 1.2% annual decrease in electricity rates over the next five years instead of an increase. This change comes as a result of various measures implemented by the government.
In response to concerns raised about increased electricity bills due to reduced benefits from solar energy, CM Fadnavis highlighted that Mahavitran has achieved the milestone of becoming the largest company in the country with an annual revenue exceeding Rs 1 lakh crore. Industries in the state will now receive up to a 25% discount for consuming electricity during designated “Solar Hours” from 9:00 a.m. to 5:00 p.m.
Fadnavis announced a shift in discount policy, correction of regulatory errors, competitive industrial rates, relief for farmers, and battery storage incentives. The state government has adjusted its policy to offer a 25% discount to industries using power between 9:00 a.m. and 5:00 p.m., aligning with the increased availability of solar power during the day.
The Maharashtra Electricity Regulatory Commission (MERC) had made technical errors in power purchase estimates and capital expenditure, potentially resulting in significant losses for Mahavitran. By addressing these errors, the government prevented substantial financial burdens on the company and shielded consumers from possible price hikes.
Industrial electricity rates in Maharashtra have been reduced to Rs 8.32 per unit, with a further decrease expected to Rs 7.38 per unit by 2029-30, making them highly competitive compared to other states. The government’s intervention also led to corrections by MERC, ensuring fair rates for both industrial and agricultural consumers.
Fadnavis emphasized the benefits for those generating captive solar energy, who can access discounted power round the clock with the use of Battery Storage Systems. He encouraged industries to adopt this technology as battery storage costs have decreased to Rs 2.80–Rs 2.90. Massive investments are being made in infrastructure and through the ‘Mukhyamantri Saur Krishi Vahini Yojana’ to support the growing industrial demand for electricity in Maharashtra.
