Published On : Wed, Mar 11th, 2026
By Nagpur Today Nagpur News

MADC’s tariff hike plan sparks alarm among MIHAN industries

Tariff hike proposed for first two years to bridge revenue gap; entrepreneurs seek intervention from CM Devendra Fadnavis and Union Minister Nitin Gadkari
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Nagpur: The Maharashtra Airport Development Company (MADC), which manages electricity distribution in the MIHAN SEZ area, has submitted a revised power tariff proposal for consumers. The proposal has been filed in compliance with directives issued by the Supreme Court of India and the Appellate Tribunal for Electricity.

Under the proposal, MADC has suggested revised electricity tariffs for the period from financial year 2026-27 to 2029-30. The move has sparked concern among industrial units operating in the MIHAN SEZ, with many fearing that higher power tariffs could disrupt their cost calculations and affect business viability.

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Why the tariff revision is being proposed

According to MADC officials, recent court orders require all power distribution companies (DISCOMs) to eliminate their accumulated revenue gap by March 31, 2028. Earlier, MADC had planned to recover this deficit gradually until 2029-30. However, to comply with the revised timeline, the company now plans to increase tariffs during the next two financial years, 2026-27 and 2027-28, to recover the pending revenue gap.

Impact on consumers

As per the proposed tariff structure, MADC has determined revised energy charges and wheeling charges for various consumer categories, including High Tension (HT) and Low Tension (LT) users. The company stated that the aim is to recover the revenue deficit within the stipulated time so that electricity tariffs can remain stable and affordable in the long run.

Proposed tariff trend

According to the proposal:

• FY 2026-27: Power tariff likely to increase by around 9.15%

• FY 2027-28: Further increase of about 8.88% proposed

• FY 2028-29: Tariffs expected to decline by about 9.78%

• FY 2029-30: Additional reduction of around 1.69% proposed

Industry seeks government intervention

The proposed tariff hike has triggered concern among industries and MSMEs operating in MIHAN SEZ. The MIHAN India Industries Association has expressed serious apprehension over the move.

Association president Manohar Bhojwani said export-oriented industries are already facing severe pressure due to global geopolitical uncertainties and rising maritime freight costs. “In such a situation, any increase in electricity tariffs could severely affect the competitiveness and survival of industries operating in MIHAN,” he said.

The association has sought immediate intervention from Chief Minister Devendra Fadnavis and Union Minister Nitin Gadkari, urging them to look into the matter and protect industrial interests.

Meanwhile, MADC has submitted the tariff petition to the Maharashtra Electricity Regulatory Commission (MERC), which will conduct hearings and consider objections from consumers and stakeholders before taking a final decision.

MADC officials maintained that the tariff revision has been proposed strictly to comply with legal directives and maintain financial discipline in the power distribution system.

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