Govt sanctions over Rs2,500 crore to MSEDCL for power subsidies
MSEDCL
) for the financial year 2025-26.
Three separate government resolutions (GR) were issued by the state govt in this regard on Wednesday.
As part of the Chief Minister Baliraja Free Electricity Scheme, an amount of Rs1,864 crore was sanctioned to be disbursed in cash to the MSEDCL. The funds will be exclusively used to provide free or subsidised electricity to agricultural pump consumers.
The approved amount is part of the larger Rs15,000 crore provisioned for the scheme in the state's 2025-26 budget.
The financial aid will benefit farmers using pump sets up to 7.5 HP capacity and is aimed at reducing the burden of electricity expenses on the farming community. The scheme, which began in April 2024, will continue for five years till March 2029.
As per MSEDCL sources, under the scheme, free electricity is being provided to agricultural pumps up to 7.5 horsepower in the state from April 2024.
"This scheme provides benefits to farmers across the state, including over 9.48 lakh farmers owning agricultural pumps in Nagpur, Wardha, Akola, Buldhana, Washim, Amravati, Yavatmal, Chandrapur, Gadchiroli, Gondia, and Bhandara districts in the Nagpur regional division," MSEDCL sources said.
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Similarly, the state govt has also allocated Rs400 crore from the Rs1,000 crore earmarked for electricity rate concessions to industrial consumers. However, instead of a cash transfer, this amount will be settled through inter-departmental adjustment, recovering it from Maharashtra State Transmission Company Ltd (MSETCL) and crediting it under the relevant subsidy account. This move aims to ensure electricity tariff relief to the state's industrial sector.
Similarly, to support the textile industry, the govt has approved a subsidy of Rs240 crore out of the Rs600 crore provisioned for the year. This, too, will be disbursed through adjustment, without any cash transfer, and will be offset against outstanding dues to MSEDCL.
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