Electricity Tariff Reduced, But Questions Over Equity in Benefits Spark Debate

Savings of ₹66,000 crore in power purchase to reduce tariffs for five years, says Mahavitaran CMD; Opposition calls it a sleight of hand

Mumbai: In what is being touted as a major win for electricity consumers in Maharashtra, Mahavitaran—the state’s power distribution company—announced that electricity tariffs have been reduced following a projected savings of ₹66,000 crore in power purchase costs over the next five years. However, the move has drawn sharp criticism from the opposition, which claims the benefits are not equitably distributed.

Speaking at a press conference on Thursday, Mahavitaran Chairman and Managing Director Lokesh Chandra stated that this reduction was made possible due to the long-term planning undertaken over the last two and a half years under the leadership of Chief Minister Devendra Fadnavis. “We have entered into power purchase agreements to add 45,000 MW capacity, focusing mainly on renewable sources such as solar, wind, pump storage, and battery storage,” he said.

Chandra added that due to the lower cost of renewable energy, especially through schemes like the Mukhyamantri Saur Krishi Vahini Yojana 2.0, Mahavitaran will be able to purchase electricity at an average rate of ₹3 per unit for agricultural needs. “This game-changing initiative alone will significantly bring down costs, ensuring tariff stability and reduction for domestic, commercial, and industrial consumers.”

He further assured that electricity tariffs will not increase for the next five years, and may in fact reduce further due to the fixed low-cost nature of renewable power agreements—25 years for solar and 40 years for pump storage.

As part of its new strategy, Mahavitaran will also offer an additional discount of 80 paise per unit for domestic consumers with smart meters during off-peak hours (9 AM to 5 PM). Chandra said complaints from such consumers have “almost vanished” and that smart meters ensure real-time usage tracking and transparent billing.

Regarding concerns raised about Maharashtra’s industrial power tariffs being higher than other states, Chandra refuted the claims. “When state subsidies and concessions are considered, our industrial rates are already competitive. They will further reduce, eventually falling below those in industrial hubs like Gujarat and Tamil Nadu,” he asserted.

However, the announcement did not go unchallenged.

Leader of the Opposition in the Maharashtra Legislative Council, Ambadas Danve, took to social media to criticise what he called “sleight of hand.” In a sharply worded tweet, Danve stated: “70% of customers get a standard benefit—what about the rest? Those with higher bills see no relief. If a benefit is truly meant to ease burden, it should be extended to all. Sleight of hand doesn’t go unnoticed, Mr. CM!”

Danve’s comment hints at dissatisfaction among higher-consumption consumers—such as urban households, industries, or commercial units—who may not feel proportionate benefits from the tariff revisions.

As the tariff cut is celebrated by the government as a result of its policy foresight and push toward renewables, opposition leaders and consumer groups are expected to continue demanding transparency in how the benefits are being distributed across different consumer categories.