Maha’s industrial electricity usage declined since 2013

Mumbai : The state economic survey 2016-17 tabled in the assembly last week has revealed that the state lost industrial consumers since 2013 and consumption too went down for railways and public services. Experts have blamed it on higher power tariff imposed by state-owned companies and the shift to other sources such as central grid or neighbouring states like Chhatisgarh. The survey said that though Maharashtra boasts the highest capacity for generating electricity, 59 per cent of the energy comes from private companies.

In 2013-14, industrial consumption was 38,949 MU; in 2014-15, it was 41,522 MU; in 2015-16, it went down to 40,231 MU with the lowest that year being 25,526 MU. In 2016-17, it has increased marginally to 31,046 MU, according to the survey. Since 2012, consumers have started shifting to open grid access after the Centre allowed change of supplier in the Electricity Act, 2003. Open grid allows consumers of one mega watt (MW) and above to buy cheaper power from other companies in the market. The consumers’ shift is ironic for the state when it has declared a cut in power tariff for those interested in setting up industries in Vidarbha and Marathwada.

Convenor of Veej Grahak Sanghatana, Pratap Hogade, said. “After the industries tariff increased in Maharashtra by 25 to 30 per cent, consumers moved to open access in 2012. The tariff went up in 2013, 2014 and 2015. Around 600 consumers have gone to open access. New industries have also not come up because of expensive tariff in the state.” The state sells power at Rs 8 per unit while in open access, the rate is Rs 5.5 to Rs 6 per unit.

Mr Hogade said that the concession given to industries being set up in Vidarbha and Marathwada would not help much. “The state’s consumption is more in Mumbai, Konkan, Pune and Nashik areas. So, giving incentive in Marathwada and Vidarbha region will not help much,” he said.