Mumbai, June 26, 2025: Maharashtra is set to witness a significant reduction in electricity tariffs, thanks to an estimated ₹66,000 crore savings in power purchase costs over the next five years. The announcement was made by Mahavitaran Chairman and Managing Director Lokesh Chandra during a press conference held in Mumbai on Thursday.
These savings, the result of extensive planning and investment in renewable energy under the leadership of Chief Minister Devendra Fadnavis, will be directly passed on to consumers, leading to a tariff reduction for domestic, commercial, and industrial users over the next five years. “We have made strategic efforts over the last two and a half years, which are now yielding long-term benefits for all electricity consumers,” Chandra stated.
The Maharashtra Electricity Regulatory Commission (MERC) has approved Mahavitaran’s proposal for tariff reduction, aligning with the state’s future power strategy up to FY 2034–35. Accompanying Chandra at the press meet were Mahavitaran directors Sachin Talewar (Operations), Yogesh Gadkari (Commerce), Anudeep Dighe (Finance), and Rajendra Pawar (Human Resources).
Renewable Energy at the Core of Future Strategy
To meet Maharashtra’s projected electricity demand, Mahavitaran has signed power purchase agreements to add 45,000 MW of capacity over the next five years. The focus is largely on renewable energy sources—solar, wind, pumped hydro, and battery storage. “Electricity from these sources will be available at cheaper and stable rates, contributing to massive cost savings,” Chandra explained.
Highlighting the success of Mukhyamantri Saur Krishi Vahini Yojana 2.0, a 16,000 MW solar power project designed to supply daytime electricity to farmers at an average rate of ₹3 per unit, Chandra emphasized that such innovative schemes are crucial in reducing long-term power procurement expenses.
He further noted that electricity rates from solar and pump storage systems will remain fixed for 25 and 40 years, respectively, enabling Mahavitaran to maintain tariff stability and further reduce prices in the years ahead.
Electricity Tariff to Remain Unchanged for Five Years, May Reduce Further
Mahavitaran has assured that electricity tariffs in Maharashtra will not increase for the next five years. In fact, rates may further decrease after this period due to the stable cost structure of renewable energy.
An additional benefit is being extended to domestic consumers with smart meters—an 80 paise per unit discount for usage between 9 am and 5 pm will continue. Chandra clarified that smart meters not only offer transparency in billing but have also drastically reduced billing complaints in areas where they are operational.
Maharashtra’s Industrial Power Tariffs Are Competitive
Addressing concerns over high electricity tariffs for industries, Chandra dismissed the claims as unfounded. He asserted that when current concessions are considered, Maharashtra’s industrial tariffs are competitive with other states. He added that in the next five years, industrial tariffs will further drop and become lower than those in industrial hubs like Gujarat and Tamil Nadu.
