Maharashtra to Cut Electricity Tariffs by 26% in 5 Years: Fadnavis Announces Landmark Relief

In a historic move aimed at providing significant relief to electricity consumers, Maharashtra Deputy Chief Minister Devendra Fadnavis on Wednesday announced that the state will slash power tariffs by 26% over the next five years. The plan, which starts with a 10% reduction in the first year, marks the first time in Maharashtra’s history that electricity rates will be reduced instead of increased.

Historic First in Maharashtra’s Power Policy

Taking to X (formerly Twitter), Fadnavis, who also holds the Energy portfolio, confirmed that the Maharashtra State Electricity Regulatory Commission (MERC) has approved a petition by Mahavitaran (MSEDCL) to reduce electricity rates. “For the first time in the history of the state, electricity rates will be reduced by 10% in the first year and 26% over five years in phases,” he posted.

This decision follows recent reports suggesting the possibility of a 10% hike in electricity tariffs. However, in a rare policy reversal, Mahavitaran filed a request for tariff reduction, which MERC has now approved—another first in the state’s regulatory history.

Who Will Benefit from the Electricity Rate Cut?

The power tariff reduction will be applicable across all three major consumption categories:

• Domestic consumers
• Industrial users
• Commercial establishments

Fadnavis emphasized that 70% of consumers, particularly households using less than 100 units per month, will benefit the most, with a flat 10% reduction in their electricity bills starting in the first year.

This rate cut is expected to bring much-needed relief to millions of middle-class households and small-scale industries that have been struggling with high energy costs.

Support for Farmers Under Saur Krishi Vahini Yojana 2.0

In addition to tariff cuts for urban and industrial consumers, the government is fast-tracking work on the Mukhyamantri Saur Krishi Vahini Yojana 2.0. This initiative aims to ensure day-time electricity supply to farmers, a critical requirement for agricultural productivity in the state.

“Work is being done on a war footing to supply solar-based, reliable electricity to our farmers during the daytime,” Fadnavis stated.

Push for Green Energy to Drive Long-Term Savings

One of the key elements of the tariff reduction strategy involves transitioning Maharashtra’s energy procurement model to focus on renewable energy. The state government has proposed changes to future power purchase agreements (PPAs), favoring green energy sources like solar and wind.

Fadnavis explained that this shift will reduce electricity procurement costs, as renewables offer long-term savings due to lower operational expenses. He believes that this will not only support the tariff cut plan but also align with Maharashtra’s commitment to sustainable energy.

“Due to the large emphasis on green energy in power purchase agreements in the coming period, there will be savings in the cost of purchasing electricity,” he added.

A Game-Changer for Maharashtra's Power Sector

With electricity rates consistently rising across India, Maharashtra’s decision to reduce tariffs over the next five years sets a benchmark for other states. Experts believe this could help stimulate economic activity, ease household financial burdens, and improve industrial competitiveness.

By introducing a balanced mix of affordability, reliability, and sustainability, Maharashtra is redefining its power policy with a strong consumer-first approach.