The Nagpur Residential Hotels Association (NRHA) has expressed serious concern regarding the recent MERC Order (Case No. 75 of 2025) that reclassifies hotels from industrial to commercial electricity tariff. The association believes that this move could pose significant challenges to the hotel industry, particularly in Vidarbha, a region still striving for balanced economic development.
“This decision is unfortunate for the hospitality sector, which is already navigating several post-pandemic challenges,” said Tejinder Singh Renu, President of NRHA. “The change in classification and marginal increase in tariff is likely to escalate operational costs for hotels, many of which are small and medium enterprises working hard to stay afloat.”
Gold Rate
26 June 2025
The reimbursement procedure outlined in the order requiring hoteliers to pay commercial tariffs first and then apply for refunds has raised concerns over increased procedural burden. “While we appreciate the intent to support the industry through refunds, the process as it stands appears to be complex and time-consuming,” Renu added.
Deepak Khurana, secretary of NRHA highlighted the reduction in permitted solar usage hours for commercial establishments, which NRHA believe may discourage further investment in renewable energy. “The hospitality sector in Vidarbha has been making sincere efforts to embrace green energy. A more enabling environment would go a long way in sustaining this transition,” he said.
NRHA has requested the MERC and the state government to revisit this decision and consider continuing the industrial tariff classification for hotels, especially in regions like Vidarbha which are still developing their tourism and service economies. Balanced regional growth is a shared goal, and we hope this concern will be addressed in that spirit.
