State govt allocates Rs 1200 crore annual electricity subsidy to M’wada industries

Subsidy will be given every year for next three years

Chhatrapati Sambhajinagar: In a move that resolved a long pending issue of the industrial sector, the Maharashtra state government has announced a subsidy package totaling Rs 1200 crores over the next three years for industries in Marathwada. This decision has been welcomed by the Chamber of Marathwada Industries and Agriculture (CMIA) and the Marathwada Association of Small Scale Industries and Agriculture (MASSIA).

The new electricity tariff rates, which came into effect from April 1 last year, had drawn sharp criticism from industrialists who claimed it would severely impact their operations. Both CMIA and MASSIA had protested against the hike, alleging that it would further burden industries already struggling with high electricity bills.

Assurances were given by the state government to provide subsidies to mitigate the impact of electricity bills on industries. Since then, representatives from these industrial organisations had been consistently lobbying the government for the subsidy.

Taking cognizance of the situation, the state government has now decided to extend the subsidy to industries falling in D and D category in Marathwada, Vidarbha and North Maharashtra regions till 2027. According to the plan, industries in Marathwada are set to receive approximately Rs 1,200 crores annually for electricity bill subsidies, said CMIA president Dushyant Patil.