X: @vivekbhavsar
Mumbai: Maharashtra’s much-publicised Magel Tyala Saur Krushi Pump Yojana (MTSKPY) —launched to provide reliable, solar-powered irrigation to farmers—faces fresh scrutiny over its tendering process.
While the scheme promised sustainability and transparency, the numbers now point to concentrated allocations, opaque decisions, and a looming fear of cartelisation.
Two Tenders, One Pattern
The first phase, Magel Tyala Saur Krushi Pump Yojana (MTSKPY-I), was floated by Maharashtra State Electricity Distribution Company Ltd (MSEDCL) on 12 August 2024 for the supply, installation and maintenance of 1 lakh solar pumps across the state.
The second phase, Magel Tyala Saur Krushi Pump Yojana (MTSKPY-II), was floated on 26 May 2025 with an Earnest Money Deposit (EMD) of ₹ 2 crore, and a pre-bid meeting scheduled for 10 October 2025.
Experts fear that unless reforms are introduced, the new tender could replicate the pattern of MTSKPY-I—where a handful of companies cornered almost the entire ₹ 2,500-crore project.
How MTSKPY-I Was Split
In the 2024 tender, 64 firms bid and 60 qualified. Yet eight companies bagged 79 percent of the total 1 lakh pumps, leaving dozens with negligible orders.
Each pump cost around ₹ 2.5 lakh, taking the project’s estimated value to ₹ 2,500 crore.
Roughly ₹ 420 crore worth of allocations remain unaccounted, intensifying calls for a full audit.
The Fear of a Cartel.
Analysts warn that when nearly 80 percent of work consistently lands with the same group, competition dies and pricing discipline erodes.
“If MTSKPY-II repeats this pattern, Maharashtra risks institutionalising a cartel under the guise of a farm-empowerment scheme,” an industry insider said.
Market Signals Raise Eyebrows
After MTSKPY-I was awarded, several beneficiary firms saw sharp jumps in investor interest.
GK Energy Ltd, awarded ₹ 477 crore work for 19,100 pumps, floated a ₹ 560-crore IPO soon after.
Shakti Pumps, already listed, saw its stock volume surge following its ₹ 612-crore order.
Economists call this “policy-linked profiteering”—where public tenders inflate corporate valuations more than actual performance.
Farmers Still Waiting
On the ground, delays in delivery, installation and after-sales support continue.
Farmers complain that many pumps sanctioned in 2024 are yet to reach them, undermining the scheme’s promise of energy independence.
Unanswered Questions
Why did MSEDCL permit such lopsided distribution in MTSKPY-I?
Where did the remaining 5,000+ pumps go?
Were eligibility and capacity norms altered to favour large players?
Transparency advocates say only a departmental audit or legislative probe can rebuild public trust.
Lessons for MTSKPY-II
With the new tender’s ₹ 2 crore EMD likely to deter smaller players, the playing field may once again tilt toward dominant firms.
To prevent a repeat, experts urge MSEDCL to cap allocations per company and publish bid-wise data publicly.
What Needs to Change
1. Transparent allocation – equitable distribution among qualified bidders.
2. Cap on market share – no firm to receive over 10-15 percent of total orders.
3. Independent audit – verify missing allocations and pricing logic.
4. Farmer-centric monitoring – delivery and quality certified by neutral agencies.
5. Public disclosure – full tender and work-order details in the public domain.
At a Crossroads
The Magel Tyala Saur Krushi Pump Yojana began as a vision to empower farmers through green energy.
But unless the upcoming MTSKPY-II corrects the course set by MTSKPY-I, Maharashtra risks turning a ₹ 2,500-crore sustainability programme into a case study of cartelised governance.
As the 10 October pre-bid meeting approaches, the question looms large:
Will MSEDCL ensure fair competition—or will history repeat itself?
(Read in the Part II of the investigative series: “The Power Insider — Rite Water Solutions and the Vishwas Pathak Connection.”)
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