The government will pay the SEBs Rs 7200 crore and there are plans to make power cheaper for Mumbai too, the CM added in an interview to CNBC-TV18.
The Maharashtra government today announced a 20 percent cut in power tariff for the industrial and agriculture classes of consumers . The state cabinet accepted the recommendations of a high-powered committee led by Narayan Rane, which suggested a 20 percent power subsidy for users for a 10-month period till the state elections in October.
Below is the edited transcript of Chavan's interview to CNBC-TV18.
Q: Let me ask you for a clarification on the decision that has been taken by the Maharashtra government today. The details are sketchy, if you can elaborate? I understand that this cut in tariff is not for Mumbai, it is for all areas outside of Mumbai. If you can take us through the details of the decision that has been taken today?
A: Decision that has been taken today in the Maharashtra cabinet was as a result of a sub-committee of the cabinet appointed on November 19, 2013. The industry has been complaining that although we were able to provide electricity to industry 24X7 basis but the Maharashtra tariff was high.
There is also a compliant from the agriculture sector which faced drought for two consecutive years and excess rains in Vidarbha region. There is a great distress in textile sector, particularly power loom sector which we subsidize heavily.
All these sections of the society and also the domestic consumers all have been demanding some cut in power tariff.
We consciously took a decision to appoint a sub-committee to the cabinet on November 19 which was chaired by the industry minister Mr Rane. The committee deliberated and gave a report to the Cabinet. Cabinet deliberated on the report and today we took a decision to give relief of Rs 7200 crore over a year to all sections of the society, all sections of electricity consumers that I mentioned. The average rate cut would be of the order of 20 percent.
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