Nagpur: A proposal by the Maharashtra Airport Development Company (MADC) to increase electricity tariffs in MIHAN has triggered concern among industrial stakeholders, who fear the move could raise operating costs and impact the region’s attractiveness as an investment destination.

MADC, the deemed electricity distribution licensee for MIHAN, has filed a Multi-Year Tariff (MYT) petition before the Maharashtra Electricity Regulatory Commission (MERC) for the period FY 2026-27 to FY 2029-30. The proposal has been submitted to comply with directions of the Supreme Court and the Appellate Tribunal for Electricity (APTEL), which require all regulatory assets and revenue gaps to be cleared by March 31, 2028.

However, the proposed tariff revision has raised a larger question: Can MIHAN continue to market itself as a competitive industrial hub if electricity costs rise substantially?

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Tariffs Proposed to Rise Before Declining

According to MADC’s proposal, electricity tariffs would increase during the first two years to recover accumulated revenue gaps before reducing in the following two years.

Proposed Tariff Changes

Financial Year	Proposed Change
FY 2026–27	▲ +9.15%
FY 2027–28	▲ +8.88%
FY 2028–29	▼ -9.78%
FY 2029–30	▼ -1.69%

Summary: MADC proposes tariff increases in the first two years to recover accumulated revenue gaps, followed by reductions in the subsequent two years.

The current average tariff in MIHAN is around ₹6.76 per unit. If approved, the effective cost of electricity could rise to nearly ₹11 per unit, depending on the applicable consumer category and charges.

Industries Raise Red Flag

Industrial associations have expressed strong reservations over the proposal, arguing that higher electricity costs would increase production expenses at a time when businesses are already facing rising input costs.

Many entrepreneurs believe that one of MIHAN’s biggest strengths has been its promise of modern infrastructure and a business-friendly ecosystem. They fear that a sharp increase in power tariffs could weaken MIHAN’s competitive advantage over other industrial hubs.

Proposed Charges by Consumer Category

Consumer Category	Fixed / Demand Charge	Energy Charge
HT Industrial	₹300 per kVA	₹5.20 per kWh
HT Commercial	₹320 per kVA	₹5.25 per kWh
LT Industrial	₹250 per kVA	₹5.25 per kWh
LT Commercial	₹280 per kVA	₹5.30 per kWh

Note: A common wheeling charge of ₹0.93 per kWh will be charged in addition to the above energy charges for all applicable consumer categories.

Bigger Questions for MIHAN

The tariff proposal has sparked a broader debate over MIHAN’s future competitiveness.

For years, MIHAN has been promoted as one of Central India’s flagship industrial and logistics projects, attracting investments across sectors including manufacturing, aviation, IT and logistics. Industry representatives now question whether higher power costs could discourage future investments and expansion plans.

The proposal also comes at a time when both the Central and Maharashtra governments are actively promoting manufacturing, exports and employment under various industrial initiatives.

MERC to Hold Public Hearing

The Maharashtra Electricity Regulatory Commission is expected to invite objections and suggestions from stakeholders before taking a final decision on the tariff petition.

Industrial associations are preparing to present their objections during the public consultation process, maintaining that while regulatory compliance is necessary, the financial burden should not adversely affect industries that have invested in MIHAN.

The Questions Being Asked

As the proposal moves through the regulatory process, several questions remain:

Will higher electricity tariffs affect MIHAN’s ability to attract new investments?

Can industries remain competitive with significantly higher power costs?

Is there an alternative to recovering MADC’s revenue gap through consumer tariffs?

Will Nagpur’s political leadership-including Union Minister Nitin Gadkari and Chief Minister Devendra Fadnavis, both long-time advocates of MIHAN-seek a balanced solution that protects industrial growth while ensuring regulatory compliance?

The answers to these questions could shape not only the future of electricity pricing in MIHAN but also the region’s long-term industrial competitiveness.