The proposal is on the lines of the Arvind Kejriwal government in Delhi, which gives 100% subsidy in power tariff up to 200 units to everyone.
Mumbai| Maharashtra power minister Nitin Raut on Friday announced that the state is looking to give free electricity to residential users whose monthly consumption is up to 100 units.
However, experts warn that the move would be a disaster for industries in the state. The move to give 100 units of free power may not be easy because the Maharashtra State Electricity Distribution Company Limited (MSEDCL) is already facing losses.
“We have asked our department to look into whether the scheme can be implemented. The department will be submitting a report within the next three months,” said Raut while speaking to media persons.
Raut said the state is also looking to provide electricity to farmers during the day and also plans to reduce power charges across the state. The move to give 100 units of free power may not be easy because the Maharashtra State Electricity Distribution Company Limited (MSEDCL) is already facing losses.
MSEDCL is finding it tough to replace old transformers and other equipment. Raut admitted that the task would be difficult but claimed that the move could be managed if the MSEDCL manages to bring down its distribution losses and also penalise those who are stealing power. However, experts, such as Ashok Pendse, have questioned the state government’s logic claiming that the move was not financially feasible at all in a state like Maharashtra. “There are around 40 lakh people in the state who consume between 1 and 100 units of power. The revenue comes to Rs 100-120 crore and annually the money foregone would be around Rs 1,300 crore. The government cannot forego this revenue,” he said.