Nagpur: In a significant move, the State Cabinet on Tuesday decided to extend concession in power tariff to industries in Vidarbha and Marathwada for another five years. The concession in power tariff to industries in these two backward regions of state was earlier provided from 2013 to 2019. Now, the concession in power tariff has been extended from April 1, 2019 to March 31, 2024. This was announced by Energy Minister Chandrashekhar Bawankule in Mumbai.
The move is believed to be a major boost to industries in backward and drought-prone regions of the state. This would help the government to woo investors including FDI to set their shops in the state.
The Cabinet meeting chaired by Chief Minister Devendra Fadnavis approved the proposal submitted by Energy Department. As per the decision, all new industries to come up in Vidarbha, Marathwada, parts of North Maharashtra and C, D, D+ category industrial areas across the state will get subsidy in power tariff per unit. D and D+ category industrial areas are economically and industrially most backward belts. Besides, existing industries will get incentives based on load factor and a concession in the Fuel Adjustment Charges based on efficiency in energy usage. The state government expects to incur a cost of Rs 600 crore per year.
Bawankule further said that power tariff at the rate 9.30% duty on industrial consumers is imposed presently. Following subsidy in power tariff, Vidarbha and Marathwada have received boost in industrial output. Employment has also been generated in large numbers. The State has received investment to the tune of Rs 217774.1 crore in power sector while Vidarbha and Marathwada too received investment of Rs 157204.1 crore.