State Cabinet's call on power tariff cut in Mumbai today

The Maharashtra government is weighing at least three options to reduce power tariff to provide relief to consumers in Mumbai.

These are giving directions to the Maharashtra Electricity Regulatory Commission under sections 48 and 108 of the Electricity Act, 2003, to issue a revised tariff order; providing subsidy to private distributors mainly Tata Power and Reliance Infrastructure; and ordering an audit of these companies. Besides, the government will also hold a meeting with distribution companies to approach the power regulator for a tariff revision. Chief Minister Prithviraj Chavan held a meeting on Monday with officials to examine these options. Chavan's move comes close on the heels of a hunger strike (now called off) by Congress MP Sanjay Nirupam, demanding reduction in the tariff charged by Reliance Infrastructure.

The state cabinet is expected to take up the proposal on Wednesday. The government had already reduced tariff up to 20 per cent of power, supplied by the state-run Maharashtra State Electricity Distribution Company (MahaVitaran) to its 21.4 million consumers.