Bonanza for middle class! Maharashtra govt announces 10% reduction in electricity tariffs, eyes 26% cut in 5 years. Details here

The Devendra Fadnavis-led Mahayuti government in Maharashtra has announced a reduction in electricity tariffs in a phased manner. In the first year, the electricity tariffs will be reduced by 10%. The state government is eyeing a total 26% reduction in phases over the next 5 years. 

The Maharashtra Electricity Regulatory Commission (MERC) approved this proposal by the Maharashtra State Electricity Distribution Co. Ltd. (MSEDL) to reduce the power tariffs.

"In Maharashtra, electricity rates will be reduced by 10% in the first year and 26% in 5 years, in stages. The proportion of people using less than 100 units of electricity in the state is 70%. Work on Mukhyamantri Saur Krishi Bahini Yojana 2.0 has started on a war footing," the Maharashtra CMO statement read. 

The more substantial relief has been granted to residential users consuming less than 100 units of electricity. MSEDL supplies electricity across Maharashtra, barring Mumbai. In Mumbai, electricity distribution is handled by BEST, Tata Power, and Adani Electricity. 

The reduction in power tariffs is set to benefit domestic, industrial, and commercial consumers, respectively. Moreover, the Mukhyamantri Saur Krushi Vahini Yojana 2.0, to ensure reliable daytime power for our farmers, is being fast-tracked to ensure timely execution.

The scheme aims to provide solar-powered electricity to farms. Fadnavis said that the state can reduce procurement costs and maintain affordable rates for the public by focusing more on renewable energy sources in power purchase agreements. 

"With a growing focus on renewable energy in our power purchase agreements, future savings in procurement costs will help sustain affordable tariffs. It gives immense satisfaction to share this people-centric decision with the citizens of Maharashtra," the CM said. 

Previously, petitions for a 10% rise in power tariffs were submitted to the MERC. In March this year, the MERC announced new electricity tariffs from April 1.