Did the Maha Cabinet Really Approve a Tax Increase on Electricity Sales to Support the PM-KUSUM Scheme?
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Synopsis
The Maharashtra Cabinet's recent decision to increase the electricity sales tax aims to fund the PM-KUSUM scheme, which supports solar irrigation for farmers. This initiative seeks to enhance the installation of solar agricultural pumps across the state while promoting renewable energy solutions.
Key Takeaways
- Tax increase of 9.90 paise per unit approved.
- Funding directed towards the PM-KUSUM scheme.
- Plan to install 6.50 lakh solar pumps.
- More than 4.23 lakh pumps have already been installed.
- Annual revenue expected to be Rs 1,764 crore.
Mumbai, Sep 30 (NationPress) The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, has sanctioned a 9.90 paise per unit hike in the additional tax imposed on the sale of electricity (Additional Time of Supply/Servicing Equipment). This increase will be levied on industrial and commercial consumers of both private electricity distributors and the state-owned Mahavitaran.
The government has approved raising the additional tax on supply/servicing equipment from 11.04 paise per unit to 20.94 paise per unit.
The funds generated from this tax hike will be allocated to finance the Pradhan Mantri Kusum Phase-B Yojana.
According to the government’s announcement, this initiative aims to provide farmers with adequate electricity for daytime irrigation through solar-powered agricultural pumps.
The plan includes installing a total of 6.50 lakh solar agricultural pumps in Maharashtra under the Pradhan Mantri Kusum Ghatak-B Yojana, as stated.
Currently, over 4.23 lakh solar agricultural pumps have already been set up in the state.
To complete the installation of the remaining 2.27 lakh solar pumps by March 2026, the state government requires Rs 3,591.38 crore.
The anticipated revenue from the tax increase is projected at Rs 147 crore monthly and Rs 1,764 crore annually.
The government’s decision to enhance electricity sales tax aims to secure the necessary funds for the successful implementation of this scheme.
The Pradhan Mantri Kusum Ghatak-B Yojana, part of the national PM-KUSUM initiative, is designed to assist farmers in transitioning from diesel pumps to standalone solar pumps in off-grid areas.
This program offers financial aid for pump installations, with the state subsidizing a considerable portion of the costs, thereby making solar irrigation more feasible and promoting renewable energy.
Under this scheme, the Central government contributes a 30 percent subsidy on the benchmark cost of the pump, alongside offering loans up to 30 percent of the project cost.
Support is available for pumps with a capacity of up to 7.5 horsepower, while farmers can install higher capacity pumps at their own expense.
Point of View
It's crucial to consider the broader implications of this funding initiative for the PM-KUSUM scheme. While the intent to support farmers through solar irrigation is commendable, the financial burden on industrial and commercial consumers warrants scrutiny. A balanced approach ensuring both support for agricultural modernization and economic sustainability is essential for the state's growth.
NationPress
30/09/2025
Frequently Asked Questions
What is the purpose of the tax hike approved by the Maharashtra Cabinet?
The tax hike is intended to fund the Pradhan Mantri Kusum Phase-B Yojana, which aims to provide solar agricultural pumps to farmers for daytime irrigation.
How much will the electricity sales tax increase?
The electricity sales tax will increase by 9.90 paise per unit.
How many solar agricultural pumps will be installed under the PM-KUSUM scheme?
The plan is to install a total of 6.50 lakh solar agricultural pumps in the state.
What financial support does the scheme offer to farmers?
Farmers can receive a 30 percent subsidy on the pump cost and a loan of up to 30 percent of the project cost.
What is the target completion date for the remaining solar pumps?
The state government aims to complete the installation of the remaining pumps by March 2026.
