Mumbai, March 17 (NationPress) The Chief Minister of Maharashtra, Devendra Fadnavis, announced to the Legislative Assembly on Tuesday that a range of initiatives will lead to a 1.2% annual reduction in electricity rates for the state-owned power distribution entity Mahavitaran (Maharashtra State Electricity Distribution Company Limited) over the next five years, rather than an increase.

In response to a query from assembly member Chetan Tupe about rising electricity bills attributed to diminished solar energy benefits, Fadnavis, who oversees the energy department, highlighted that Mahavitran has become the largest power distribution company in India, surpassing the Rs 1 lakh crore annual revenue mark. With the growing adoption of solar energy, industries will receive a 25% discount on electricity consumed during “Solar Hours” (from 9:00 a.m. to 5:00 p.m.).

The Chief Minister detailed a revision in discount policies, rectification of regulatory inaccuracies, competitive rates for industries, relief for farmers, and incentives for battery storage. Previously, discounts were applicable during night hours (12:00 a.m. to 6:00 a.m.) when power was in surplus. However, with solar energy's rising prominence, the daytime offers the most availability. Thus, the state government has adjusted its approach to provide a 25% discount for daytime electricity use, favorably impacting industrial consumers.

Fadnavis explained that the Maharashtra Electricity Regulatory Commission (MERC) had made errors regarding power purchase projections and capital expenditures, which could have resulted in losses of approximately Rs 80,000 crore in energy charges and Rs 55,000 crore in infrastructure costs for Mahavitran. The state government flagged these discrepancies to the Commission, averting significant financial losses for the company and protecting consumers from probable price hikes.

According to Fadnavis, the electricity rates for industries in Maharashtra are currently Rs 8.32 per unit, projected to decrease to Rs 7.38 per unit by the year 2029-30. Compared to the rates in Tamil Nadu (Rs 9.35) and Gujarat (Rs 8.43), Maharashtra's rates are set to be the most competitive, potentially the lowest nationwide. Initially, MERC had suggested a 30% increase for agricultural consumers while proposing lower rates for industries. Following governmental objections, the Commission retracted the previous order under its 'suo motu' powers and amended it, easing the burden on farmers.

Fadnavis also mentioned that those producing captive solar energy can benefit from discounted power around the clock when utilizing Battery Storage Systems. With the costs of battery storage dropping to between Rs 2.80 and Rs 2.90, he encouraged industries to consider this technology.

Furthermore, the CM pointed out that significant investments are being made through the 'Mukhyamantri Saur Krishi Vahini Yojana' and infrastructure enhancements. He noted that the demand for industrial electricity has surged by 23% in the past three years, clearly indicating a substantial influx of industries into the state.