You are here: Home » Economy & Policy » News
Business Standard

Maharashtra govt to tax power consumers to finance solar pumps for farmers

The Maharashtra State Electricity Distribution Company has applied a 10 paise per unit surcharge from November 1 to collect funds for the farmers

Topics
Energy  |  Renewable Energy  |  Maharashtra Government

Press Trust of India  |  Mumbai 

Income Tax, tax
Photo: Shutterstock

The has imposed an electricity surcharge of 10 paise per unit on industrial and commercial consumers to finance its scheme to provide 25,000 solar pumps to farmers, a senior official said Sunday.

In view of the forthcoming Lok Sabha and Maharashtra Assembly polls next year, state minister Chandrashekhar Bawankule had recently announced that farmers would be provided one lakh solar pumps in three phases between 2019 and 2021, of which 25,000 would be given in the first phase.

The Maharashtra State Electricity Distribution Company has applied a 10 paise per unit surcharge from November 1 to collect funds for the farmers.

Arvind Singh, principal secretary in the state department, confirmed the move.

"The total expense of the scheme is Rs 8.25 billion and since the state has no resources to spend on the scheme, we have decided to collect funds by applying a surcharge on consumers," Singh said.

He added that power consumers, comprising commercial and industrial users and excluding residential users, will have to pay an additional 10 paise per unit to the total consumption of monthly electricity units.

"We expect to collect Rs 90 crore per month through this surcharge," Singh said.

In the first phase, the government will provide solar pumps having a capacity of 3-5 horsepower (hp) to farmers.

An official from the Power ministry said the price of a 3 hp pump operating on Alternate Current (AC) and Direct Current (DC) supply was Rs 2.40 lakh and Rs 2.55 lakh respectively.

The cost of a 5 hp AC pump is Rs 3.25 lakh whereas the price of 5 hp DC pump is Rs 385,000.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 04 2018. 17:00 IST
RECOMMENDED FOR YOU
.