In the run-up to the Lok Sabha elections, the Maharashtra cabinet has cleared a cut in electricity tariff for the entire state except Mumbai. The move is expected to cost the state's exchequer around Rs 606 crore per month.
Apparently taking a cue from AAP dispensation in Delhi, Congress-led Maharashtra government today decided to reduce by 20 per cent the power tariff charged to domestic consumers, industries and powerlooms.
The decision to give the cut in power tariff charged by state-run Maharashtra State Electricity Distribution Company (MahaVitaran) was taken by the state cabinet today.
Maharashtra government reduces power tariff charged to domestic consumers, industries and powerlooms. Representational Pic
The concession would be applicable to consumers with consumption of less than 300 units, an official said. The cut will not be applicable in Mumbai where players other than MahaVitaran supply power.
Mumbai consumers get power supply from Tata Power, Reliance Infrastructure and BrihanMumbai Electric Supply and Transport undertaking.
The Congress-led government's decision to slash the tariff, in the run-up to the Lok Sabha elections, follows protests by Congress MPs Sanjay Nirupam and Priya Dutt, who have been demanding reduction in power charges by Reliance Energy, which supplies electricity in the city suburbs.
The government is expected to shell out Rs 606 crore per month to MahaVitaran to compensate for the tariff cut, the official said. MahaVitaran has 21.4 million consumers, of which 14.3 million are residential, 3.7 million agricultural, 1.47 million commercial and 3,70,000 industrial. Of the industrial, 12,000 are high tension consumers with a monthly consumption of 1 Mw and above.
The cabinet gave its nod to cut power tariff based on the recommendations made by a committee headed by the state Industries Minister Narayan Rane.
The Aam Admi Party government in Delhi had reduced tariff by 50 per cent of residential consumers with monthly consumption of 400 units.
Hundreds of Congress workers led by Nirupam and Priya Dutt protested outside the Kandivali West office of Reliance Energy, the Anil Ambani-owned power company, last week seeking cut in tariff.