Maha Cabinet approves power tariff rebate for lift irrigation schemes; Rs 2,000 crore HUDCO loan for infra projects

Mumbai, Sep 9 (IANS) Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday approved extending the electricity tariff subsidy scheme for farmers for ultra-high pressure, high pressure and low pressure lift irrigation schemes for another two years, till March 2027.

This will not only result in huge savings in the cost of about 1,789 lift irrigation schemes in the state, but also directly benefit the farmers associated with these lift irrigation schemes. The cabinet also cleared borrowing of Rs 2,000 crore from HUDCO to raise funds for various municipal corporations in the state to complete several projects under the Urban Infrastructure Development Loan Scheme.

According to the government release, the electricity tariff concession scheme has made it easier for farmers in the state to provide water for their crops. This is helping in increasing agricultural income. Therefore, the electricity tariff concession scheme announced earlier has helped in improving the standard of living of farmers and increasing their agricultural income. That is why it was decided to extend this welfare scheme till March 31, 2027.

In this scheme, the concessional electricity tariff for the ultra-high pressure and high-pressure lifting irrigation scheme customers is Rs. 1.16 per unit and a fixed rate of Rs 25 per month (per KVA), and for the low-pressure lifting irrigation scheme customers is Re 1 per unit and a fixed rate of Rs 15 per month (per horsepower). These tariffs will be maintained till March 31, 2027, as per today’s cabinet decision.

The cabinet also approved the payment of Rs 886.15 crore to the state-run electricity distribution company Mahavitaran for 2025-26 and Rs 872.23 crore for 2026-27 to compensate for the revenue deficit, said the release.

Meanwhile, the cabinet also approved the borrowing of Rs 2,000 crore from HUDCO to raise funds for various municipal corporations in the state to complete several projects under the Urban Infrastructure Development Loan Scheme.

This decision will enable the raising of loans of Rs 822.22 crore for the water supply project of Chhatrapati Sambhajinagar Municipal Corporation, Rs 268.84 crore for the four sewage projects of Nagpur Metropolitan Region Development Authority and Rs 116.28 crore for the water supply project of Mira Bhayandar Municipal Corporation.

Centrally sponsored Amrut 2.0 Mission, Swachh Bharat Mission 2.0, Maharashtra Suvarna Jayanti Nagarotthan Mahaabhiyan, and other central and state-level infrastructure projects are being implemented in various municipal areas of the state.

“In order to ensure that these projects do not face any shortage of funds and are completed on time, the Maharashtra Urban Infrastructure Development Loan Scheme and the procedure for raising funds from it have been decided. Accordingly, approval has been given to take a loan of Rs. 2,000 crore from HUDCO in the first phase to enable these and other municipalities to raise their own funds,” said the release.

--IANS

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