Will raise power tariff issue with CM, DCM: Pawar

State ministers fear fall in investments and seek urgent reduction

High tension industry consumers in Maharashtra with a monthly consumption of 1 lakh units and more have received support from unusual quarters for their ongoing demand for a reduction in power tariff. Union Agriculture Minister and Nationalist Congress Party chief Sharad Pawar has come out in support of industry consumers with an argument that the per unit tariff (close to Rs 9) is quite high compared to other states. Further, Pawar has assured industry consumers to take up their plea with Chief Minister Prithviraj Chavan and his deputy Ajit Pawar.

Industry bodies have argued that tariff charged by the state-run Maharashtra State Electricity Distribution Company (MahaVitaran) is higher by Rs 2 to 2.50 per unit compared to other states. According to the latest statistics available with the Maharashtra Electricity Regulatory Commission, Maharashtra tops the list with the per unit tariff of Rs 8.82, followed by Delhi (Rs 6.64), Tamil Nadu (Rs 6.04), Jharkhand (Rs 5.82),  Karnataka (Rs 5.56), Chhattisgarh (Rs 5.46) and Odisha (Rs 4.95).

Of MahaVitaran’s 22.1 million consumers, 3.12 lakh are industry consumers, of which 12,000 are high tension consumers. MahaVitaran mobilises Rs 10,000 crore annually from these high tension consumers to cross subsidise agricultural consumers in particular. MahaVitaran has sought from the state government, Rs 3,800 crore of total dues worth Rs 8,000 crore from farmers.

R B Goenka, chairman, energy cell of Vidarbha Industries Association told Business Standard, “In the current scenario, the tariff has increased to unsustainable limits. It will become difficult for industries to use such high cost energy and they will have to close down because power in neighbouring states is much cheaper. Industries in Maharashtra cannot compete with industries in neighbouring states.”

A MahaVitaran official said the discom is giving a rebate of Rs 2.50 per unit during night time for industry consumers. However, industry bodies have argued that despite this concession, tariff continues to be the highest.

Pawar's support comes at a time when a large number of ministers in the Chavan-led cabinet at its recent meeting had feared that higher power tariff may adversely impact investments and existing industry consumers may shift to other states with lower tariff. This has prompted Chavan to constitute a cabinet sub committee to look into the issue.