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Home News Power Sector News 1011 crore subsidy - Relief for over 25 million users in Maharashtra

1011 crore subsidy - Relief for over 25 million users in Maharashtra

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MahrashtraOver 25 million consumers of the state run Maharashtra Electricity Distribution Company (MahaVitaran) have received relief in electricity tariff to be applicable from November 1. The Maharashtra Electricity Regulatory Commission (MERC) in its order has rejected MahaVitaran's proposal for an average 5.5% increase in the electricity tariff for 2016-17 but has allowed a moderate hike of 1% to 1.3% fo residential consumers for the current year and also for 2017-18, 2018-19 and 2019-20.

The Below Poverty Line residential tariff category has been extended to consumers with a sanctioned load upto 0.25 Kw, as against the limit of 0.1 Kw earlier.

For low tension (LT) residential the tariff has been hiked to Rs 6.41 per unit from Rs 6.33 per unit, for LT non-residential to Rs 11.23 from Rs 11.19, for LT power looms to Rs 6.57 from Rs 6.54, for LT industry general to Rs 8.03 from Rs 7.99.

In an serious bid to provide much needed relief to the industry, consumers and to support the ''Make in Maharashtra'' initiative, MERC has reduced energy charges with a marginal increase in demand charges.

MERC's move is crucial as the state industries department and several business and industry bodies had raised concerns about the high tariff for industry consumers ranging between Rs 8.23 and Rs 13 per unit compared with other states. The industries department had pointed out that it has been higher compared to other states including Karnataka (Rs 6.80), Gujarat (Rs 6), Goa (Rs 4.80) and Madhya Pradesh (Rs 6.70).

The government made budgetary allocation of Rs 1,011 crore to provide subsidy to the state run MahaVitaran to compensate its loss. The reduction in tariff will be done by offering load factor incentive and cut in the fuel adjustment cost. The tariff will be reduced by Rs 1.25 to Rs 1.75 per unit in Vidarbha while Rs 1.50 in Marathwada and 50 paise to Re 1 in north Maharashtra and backward areas of western Maharashtra.

The tariff for Agriculture category has increased slightly, but will still meet only a little above the 50% of the Average Cost of Supply (ACoS). However, around 36% of agricultural consumers are still un-metered.

Source- Business standard


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