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News Brief | March 2016

Maharashtra seeks investments, but industrial power tariff high

Though Maharashtra has been inviting industries in the state to boost investments, it has failed to reduce industrial power tariff. The state still has 25 per cent higher tariff than the neighbouring states of Karnataka, Gujarat, Andhra Pradesh and Madhya Pradesh. Despite its poll promise to reduce industries power tariff, the BJP-led state government has not been able to do so. The activists have blamed it on the high power generation cost by the state-owned Mahagenco and leakage in distribution of power. A recent effort was made through a meeting headed by energy minister Chandrshekhar Bavankule to review the power tariff. But nothing conclusive came out of it. Industries minister Subhash Desai has made a request to the state government to reduce the tariff fearing that the businesses would shift to neighbouring states. Mr Desai admitted that the industrial power tariff is high in comparison with neighbours and said the industrialists are upset over it. Pratap Hogade, power consumer activist pointed out how the industries are forced to by expensive power by Mahgenco of ´7 to `8 per unit when other sources generate power at `3.5 per unit and added that 500-600 bigger industries have shifted to open power sources which are cheaper than the Mahagenco, besides which 14-15 per cent of the industries in border areas have gone to neighbouring states.
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