Though Maharashtra has been inviting industries in the state to boost investments, it has failed to reduce industrial power tariff.

Though Maharashtra has been inviting industries in the state to boost investments, it has failed to reduce industrial power tariff. The state still has 25 per cent higher tariff than the neighbouring states of Karnataka, Gujarat, Andhra Pradesh and Madhya Pradesh. Despite its poll promise to reduce industries power tariff, the BJP-led state government has not been able to do so. The activists have blamed it on the high power generation cost by the state-owned Mahagenco and leakage in distribution of power.

A recent effort was made through a meeting headed by energy minister Chandrshekhar Bavankule to review the power tariff. But nothing conclusive came out of it. Industries minister Subhash Desai has made a request to the state government to reduce the tariff fearing that the businesses would shift to neighbouring states.

Mr Desai admitted that the industrial power tariff is high in comparison with neighbours and said the industrialists are upset over it. “It is essential for the survival of industry in Maharashtra to have rationalisation of power tariff. I have spoken to industrialists and the energy minister also. I am hopeful that the positive decision will be taken to help the industries. Especially, industries in Vidarbha and Marathwada would be given the concession in tariff,” Mr Desai said.

Holding responsible the state government for the high tariff, Pratap Hogade, power consumer activist, said there is no industrial development in the state from past five years. “All the power consumers in the state are facing tariff hike of 12.75 per cent from last year. The high-tension industries tariff is 35 per cent more and low-tension industries tariff is 45 per cent more in Maharashtra. It is very difficult to survive in the competition with the high rates. The electricity duty is higher in the state too,” Mr Hogade said.

He even pointed out how the industries are forced to by expensive power by Mahgenco of Rs 7 to Rs 8 per unit when other sources generate power at Rs 3.5 per unit. “500-600 bigger industries have shifted to open power sources which are cheaper than the Mahagenco. Also 14-15 per cent of the industries in border areas have gone to neighbouring states,” Mr Hogade said.