MERC approves industrial tariff for hotels; Historic victory for hospitality industry, says AHRA

Chhatrapati Sambhajinagar: In a landmark decision, the Maharashtra Electricity Regulatory Commission (MERC) has officially approved industrial tariff rates for hotels, bringing long-awaited relief to the hospitality sector.

According to a Press statement issued by the Aurangabad Hotels and Restaurants Association (AHRA), for over three decades, the hospitality industry has fought for this change, arguing that hotels, like industries, require uninterrupted power for large-scale operations and should not be charged higher commercial tariffs. With this ruling, hotels will now benefit from a substantially reduced electricity tariff of ₹7.48 per unit (less 25 paise/unit for hotels in Chhatrapati Sambhajinagar), compared to the earlier ₹13.21 per unit. Additionally, electricity duty has been slashed from 21% to 7.5% (0% for hotels in Chhatrapati Sambhajinagar as industries in this district), leading to significant financial relief for businesses.

Result of persistent advocacy

“This victory is not just about regulatory change; it is a testament to our persistent advocacy, unity, and the tireless efforts of our association. After over 30 years of struggle, this long-fought dream has finally become a reality.”

Harpreet Singh President,

President, AHRA

The AHRA has thanked Government of Maharashtra, chief minister Devendra Fadnavis, and minister Atul Ji Save for their support in ensuring a fair and sustainable future for the hospitality industry. The AHRS also thanked MERC chairman Sanjay Kumar for his backing and deep insights.

Voices from the hospitality industry

Much needed relief to hospitality industry

“This is a transformational moment for our industry. The reduced tariff will provide much-needed relief to hotel owners, encouraging growth, investment, and employment in the sector.”

Shivaji Patil,

President, ADHRA

New tariffs ensure fairness, sustainability

Our persistent efforts have finally yielded results. The new industrial tariff ensures fairness and sustainability for the industry. We appreciate the government’s role in supporting this reform.”

Sunil Chaudhary,

Secretary, AHRA

Impact on the Hospitality Sector

This historic ruling is expected to drastically reduce operational costs for hotels across Maharashtra, making them more competitive and financially sustainable. The decision will:

• Encourage investment and expansion in the hospitality sector

• Make Maharashtra’s hospitality industry more competitive at national and international levels