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Maharashtra to offer power sops to arrest exodus of industries

Effective rate in Maharashtra for high-tension industry consumers is 16-38%

Power lines struggle to draw private firms

Sanjay Jog Mumbai
Some relief in electricity rates to industrial units in Maharashtra is likely in the near future.  

Fearing exodus of units to neighbouring states due to high rates, the industries department has pleaded their case with its energy counterpart. It has said lack of quality and affordable power is proving difficult for the bulk of units and that the rate of Rs 8.23 a unit for extra the high voltage (high tension) category was the highest in the country.

The comparative rates are Rs 6.8 in Karnataka, Rs 6.35 in Gujarat, Rs 6.6 in Andhra Pradesh, Rs 6.9 in Madhya Pradesh, Rs 5.75 in Chhattisgarh and Rs 5.10 in Goa.

SOME RELIEF
  • Effective rate in Maharashtra for high-tension industry consumers is 16-38%
     
  • Rate further increased as they have to pay 95 paise as fuel adjustment surcharge
     
  • Industries department pleads for allowing industrial units to purchase electricity from power exchanges
     
  • State energy department assures to bring down rate by moving to the power regulator

In sum, it says, the effective rates in Maharashtra are 16-38 per cent higher than in other states. The rise has been 20 per cent between June and December 2015.

Industries minister Subhash Desai, at an interaction with representatives of industrial units on Tuesday evening in the present of energy minister Chandrashekhar Bawankule, also asked that they be allowed to directly buy from power exchanges, on the lines of what is allowed in Gujarat, Andhra and Tamil Nadu.  

He told this newspaper Bawankule had assured relief of Rs 1,750 crore would be given in rates for units in backward and remote areas and in the Vidarbha and Marathwada regions. Also, average rates would be reduced by 60p a unit from April, after the state power distribution company, MahaVitaran, stops recovering a fuel adjustment surcharge of 95p a unit.

Bawankule also said industrial units could avail up to a 26 per cent rebate if they functioned between 6 pm and 6 am. MahaVitaran will file a petition in this regard next month at the state electricity regulatory commission.

Earlier, the Indian Merchants Chamber asked the ministers for plugging of leaks in power distribution. The association of captive power producers pleaded for lower electricity duty.
 
 

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First Published: Jan 21 2016 | 12:25 AM IST

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