The power tariff for industries in Vidarbha and Marathwada is likely to be reduced by Rs 1.5 to Rs 2 to boost industrial development in backward regions.
Bending to the demand of reducing the power tariff in the region to boost industries, the state government is soon going to make an announcement to this effect. However, this will put burden of around Rs 9,000 crore on the state government. At present, the state has the highest industrial tariff compared to the neighbouring states at around Rs 6.75 per unit.
Under the Make in India campaign, the state attracted MoUs of Rs 8 lakh crore of which Rs 1.5 lakh crore is for the Marathwada and Vidarbha regions.
The state government is concentrating on industrial development of the areas and has almost finalised the tariff reduction. The state has 25 per cent higher tariff than neighbouring states such as Karnataka, Gujarat, Andhra Pradesh and Madhya Pradesh. The power tariff has remained a challenge before the Maharashtra government when inviting industries.
The sources in energy minister Chandrashekhar Bavankule’s office said that the decision to reduce the power tariff for Vidarbha and Marathwada has been finalised.
The announcement is likely to be made during the Budget Session of legislature beginning from March 9.
“The power tariff is likely to go down by Rs 1.5 to Rs 2. The official announcement will be made in this regard soon. This will put pressure of around Rs 9,000 crore on the state distribution company which the government has to pay,” an official from the minister’s office said on the condition of anonymity. However, it is not yet clear how the government is going to pay the distribution company back, as it is already reeling under financial burden due to natural calamities and revenue deficit.
