Maharashtra to cut industrial power tariffs to Rs 7.38/unit under revised policy

Maharashtra is set to offer the lowest industrial electricity tariff in the country, with rates expected to fall to Rs 7.38 per unit under a revised power policy. As reported by The Times of India, Chief Minister Devendra Fadnavis announced during a session in the Legislative Council, positioning the state ahead of Karnataka (Rs 7.75) and Gujarat (Rs 8.98) in industrial tariff competitiveness.

The current industrial rate in Maharashtra is Rs 8.32 per unit. The Chief Minister assured that the new tariffs would remain stable and would not be affected by the tariff true-up process in the coming years.

Mr. Fadnavis explained that Maharashtra has adopted the Merit Order Dispatch system for cost-effective power procurement. Under this model, the state procures cheaper power from private generators and has entered into long-term contracts for solar, wind, and battery storage, which has lowered the overall power purchase cost.

He also noted that earlier tariff structures placed a higher subsidy burden on residential users. Under the revised framework, the tariff has been rationalised across consumer categories. Nearly 70 per cent of residential consumers using under 100 units per month will see a 26 per cent reduction in bills, while those consuming more than 100 units will also benefit.

For the agricultural sector, the state has restructured its solar pump distribution scheme. Farmers can now access single-pole connections for Rs 15,000 and request 10 HP solar pumps based on demand. Complaints regarding installation are being addressed through a centralised solar portal.

Smart meters will be introduced across agricultural regions to accurately track electricity usage and inform future policy planning. The state is also preparing a proposal to solarise lift irrigation systems and is assessing the need for conventional electricity supply in under-electrified areas known as ‘dark zones’.