Does the Maha Cabinet's Power Tariff Rebate for Lift Irrigation Schemes and Rs 2,000 Crore HUDCO Loan Signal a New Era for Farmers?

Mumbai, Sep 9 (NationPress) The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, convened on Tuesday to approve the extension of the electricity tariff subsidy initiative for farmers engaged in ultra-high pressure, high pressure, and low pressure lift irrigation schemes for an additional two years, extending until March 2027.

This decision is poised to generate substantial savings for approximately 1,789 lift irrigation schemes across the state, directly benefiting the farmers reliant on these systems. Furthermore, the cabinet sanctioned the borrowing of Rs 2,000 crore from HUDCO to fund various municipal corporations in the state, aimed at completing numerous projects under the Urban Infrastructure Development Loan Scheme.

As per an official government release, the electricity tariff assistance program has made it more manageable for farmers to irrigate their crops, thereby enhancing agricultural incomes. The previous initiatives have significantly contributed to improving the living standards of farmers, prompting the decision to prolong this welfare scheme until March 31, 2027.

The subsidy structure allows ultra-high pressure and high-pressure irrigation customers to pay a concessional rate of Rs 1.16 per unit with a fixed charge of Rs 25 monthly (per KVA), while low-pressure irrigation customers will pay Re 1 per unit with a fixed Rs 15 monthly (per horsepower). These rates will remain unchanged until March 31, 2027, following the cabinet's resolution.

Additionally, the cabinet approved payments of Rs 886.15 crore to the state-owned electricity distribution company Mahavitaran for the fiscal years 2025-26 and 2026-27 to address the revenue deficit, as outlined in the release.

In a related move, the cabinet endorsed the borrowing of Rs 2,000 crore from HUDCO to finance various municipal projects under the Urban Infrastructure Development Loan Scheme.

This strategic decision will facilitate the allocation of Rs 822.22 crore for the water supply project of Chhatrapati Sambhajinagar Municipal Corporation, Rs 268.84 crore for four sewage initiatives by the Nagpur Metropolitan Region Development Authority, and Rs 116.28 crore for the water supply project in Mira Bhayandar Municipal Corporation.

Ongoing initiatives like the Centrally sponsored Amrut 2.0 Mission, Swachh Bharat Mission 2.0, Maharashtra Suvarna Jayanti Nagarotthan Mahaabhiyan, along with various central and state-level infrastructure projects, are currently underway in numerous municipal regions throughout the state.

To ensure that these projects are not hampered by funding shortages and are executed within the stipulated timeframe, the Maharashtra Urban Infrastructure Development Loan Scheme and its funding procedures have been established. Consequently, approval has been granted to initiate a loan of Rs. 2,000 crore from HUDCO to empower municipalities in raising their own resources.