The Maharashtra government has claimed to have bagged a possible investment of Rs 8 lakh crore from the Make In India event this month, however, industrial power tariff is the biggest obstacle before
The Maharashtra government has claimed to have bagged a possible investment of Rs 8 lakh crore from the Make In India event this month, however, industrial power tariff is the biggest obstacle before it. The energy department has held several meetings to reduce tariff and has come up with a few measures, including making available coal from adjoining mines, emphasis on renewable energy sources and feeder separation.
The state has 25 per cent higher tariff than neighbouring states such as Karnataka, Gujarat, Andhra Pradesh and Madhya Pradesh. The power tariff has posed a challenge before the government when inviting industries.
To reduce the tariff, the Centre recently gave the state approval for coalmine swapping. “This will permit us to get coal from the nearest mine. It will not only reduce time, but also travel cost and ultimately bring down the generation cost,” said an official from the energy department said.
In another decision, the government is encouraging renewable energy sources.
“We have come up with the renewable energy policy and the state has already started working on it. We are expecting solar power generation which will begin in December 2016 as the tenders have already been floated. Also, there is an on-going scheme of feeder separation that will benefit rural consumers, giving uninterrupted power. We are also trying to reduce the industrial tariff by taking some more measures,” the official added.
However, the activists have blamed it on the high power generation cost by the state-owned Mahagenco and leakage in distribution of power. “Average cost of supply in Maharashtra is the highest at Rs 6.75 per unit. Power purchase cost in Maharashtra is the highest due to Mahagenco’s lowest efficiency. The government of India gives all states an Aggregate Technical and Commercial Losses (AT& C) reduction target. But Maharashtra is showing low losses at 14 per cent. Then how can we expect further improvements in Maharashtra We must agree on real distribution losses to move ahead,” Pratap Hogade president of Maharashtra Veej Grahak Sanghatana said.
Seeing hope for improvement, Mr Hogade said, “Considering the current poor situation in Maharashtra, it is expected that the state government will act with seriousness in the fastest manner with vision and courage for a way out from this situation.”
