In a landmark move to make Maharashtra more attractive for industries, the state government has unveiled plans to significantly reduce electricity tariffs for industrial users. Chief Minister Devendra Fadnavis announced in the state legislature that power tariffs for industries will be slashed to ?7.38 per unit making it the most affordable in the country. This will place Maharashtra ahead of other industrialized states like Tamil Nadu, Gujarat, and Karnataka, where power costs for industries remain higher.

 

The proposed reduction is a result of strategic reforms in power procurement, including the adoption of the Merit Order Dispatch model. This approach allows the state to purchase cheaper power from independent producers, helping lower the overall cost burden on industries. Moreover, the state is entering into long-term agreements spanning 25 years for sourcing solar, wind, and hybrid energy, including storage. These contracts aim to stabilize power prices over the long term and reduce dependency on annual tariff adjustments.

 

Beyond industries, the revised policy includes relief for multiple consumer categories. Residential users consuming less than 100 units per month can expect up to 26% lower electricity bills. Commercial establishments will also see reductions. In rural Maharashtra, farmers are set to benefit from enhanced solar schemes, including the provision of affordable ?15,000 single-pole connections, on-demand solar pumps with capacities up to 10 HP, and smart metering to improve energy efficiency and billing accuracy.

 

The Maharashtra Electricity Regulatory Commission (MERC) has already approved a multi-year tariff plan, which will be implemented in phases from April 2025. This includes a nearly 15% reduction in electricity rates for high-tension industrial users and around 11% for low-tension users in the first year. The new tariff plan is designed to provide continued relief through FY 2030, further strengthening Maharashtra’s competitiveness in the manufacturing and services sectors.

 

The government is also providing budgetary support to facilitate this shift. Around ?400 crore has been allocated for subsidizing industrial electricity and another ?240 crore for the textile industry. Officials believe this will not only retain existing manufacturing units but also attract fresh investments in areas such as data centers, electronics, and clean energy manufacturing.

 

Chief Minister Fadnavis termed the tariff reduction a historic move, noting that for the first time, industrial power rates are being reduced rather than increased. He credited the success of this initiative to collaborative efforts between the state utility Mahavitaran and MERC. He emphasized that this change will improve Maharashtra’s ease of doing business while also extending affordability to homes and small businesses.

 

Once implemented, Maharashtra’s industrial tariff of ?7.38 per unit will become the lowest in the country marking a bold step in the state’s journey toward economic revival, inclusive growth, and energy affordability.