Maharashtra CM Calls on Centre to Permit Interest-Free Bonds for MahaVitran
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Synopsis
Maharashtra's Chief Minister Devendra Fadnavis urges the Centre to reintroduce UDAY schemes and allow MahaVitran to issue interest-free bonds while promoting solar energy and improving financial efficiency in power distribution.
Key Takeaways
- Reintroduction of UDAY schemes is proposed.
- Interest-free bonds for MahaVitran suggested.
- Focus on solar energy to enhance efficiency.
- Plans to reduce electricity tariffs over five years.
- Importance of AI in improving power distribution.
Mumbai, Feb 27 (NationPress) Chief Minister Devendra Fadnavis on Thursday proposed that the Central government should reinstate programs like UDAY (Ujwal DISCOM Assurance Yojana aimed at the financial recovery of power distribution companies), lower interest rates for financing, eliminate levies, and permit the state-operated Maharashtra State Electricity Distribution Company (Mahavitaran) to issue interest-free bonds.
Fadnavis made these remarks during the second meeting of the Group of Ministers established by the central government to discuss the Financial Efficiency of Power Distribution Companies and related issues.
He highlighted that Mahavitaran is the largest power distribution entity in the country within the energy sector.
“With 28 percent of electricity consumption dedicated to agriculture, which is the highest nationwide, the revenue stands at Rs 1.12 lakh crores, with 49 percent of this revenue generated from industries. The state government is implementing measures to enhance Mahavitaran's financial status,” he stated.
He further noted that the government is advancing solar energy initiatives in the state, which will minimize electricity distribution losses and subsequently reduce electricity costs.
The savings from these initiatives will ensure that both consumers and industries benefit from lower electricity rates.
According to the Chief Minister, there is a significant provision of solar agricultural pumps which allows farmers access to electricity during daylight hours.
“The Pradhan Mantri Suryaghar Yojana is yielding substantial benefits. Under this scheme, solar energy will be made available to all households included in the Pradhan Mantri Awas Yojana, impacting nearly 30 lakh houses. This initiative is poised to trigger a major transformation. Through these strategies, the aim is to elevate the share of renewable energy to 52 percent in the state,” he said, adding that the government is significantly promoting the adoption of AI in the electricity sector.
Fadnavis reported that Mahavitaran has put forth a proposal to the Maharashtra Electricity Regulatory Commission aimed at saving Rs 66,000 crore in electricity procurement expenses through various measures. Additionally, a phased plan to lower electricity tariffs over the next five years has been proposed. The goal is to make electricity more affordable for ordinary consumers by eliminating cross-subsidies on industries.
Union Minister of State for Power Shripad Naik remarked that the central government is optimistic about boosting investments in non-conventional and renewable energy.
“The aggregate technical and commercial (AT&C) losses in the national power sector stood at 16.28 percent as per the 2023-24 data, indicating improvements in operational efficiency. To reduce AT&C losses, states such as Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, Andhra Pradesh, and Gujarat must enhance their efficiency. These states should leverage artificial intelligence (AI) and modern technology in power distribution. Furthermore, timely payments by government departments, regular rate adjustments by the State Electricity Regulatory Commission (SERC), installation of smart meters, and restructuring of debts are essential to minimize losses and raise funds through alternative means,” he suggested.
