Maharashtra cuts power tariff by 20 percent
Govt. of Maharashtra, on Monday (20th Jan 2014) posted a perfect example of political interference in the functioning of an important sector. Following the footprints of the incumbent Govt. in Delhi, Maharashtra also has approved a 20 % cut in power tariffs for residential, commercial and industrial consumers covered by its state run distribution company (MahaVitran). Such a concession is although not extended to Mumbai consumers owing to power supply from private distribution companies – Reliance Infrastructure, Tata Power and BEST.
According to a senior minister, the recommendation for a power tariff cut comes in response to huge pressure from all sections. As per an article in Business Standard, MahaVitran has warned of incurring huge losses following such a decision. The state Govt. is expected to bear an extra burden of Rs. 706 crore a month.
The proposal will now be put across the state regulator – MERC for final implementation.
For relevant media articles click on the following link –
For our previous blogpost on Maharashtra’s cross subsidy hike – click here