The Maharashtra state energy department has planned to make significant investment towards infrastructure upgrade of the state power distribution utility, reliable reports suggest.
According to reports, the ruling Maha Vikas Aghadi (MVA) government in Maharashtra will spend Rs.2,500 crore towards revenue and capital expenditure of Maharashtra State Electricity Distribution Company Ltd (MSEDL).
Of the total amount, Rs.1,500 crore will be spent on providing electricity to agricultural pumpsets while Rs.1,000 crore will go towards power distribution infrastructure upgrade in industrial and urban areas.
The upgrade will involve, among other things, setting up of new substations, new transformers, replacement/upgrade of new transformers and erection of HT/LT distribution lines.
Over the next three years, a total of Rs.3,000 crore is expected to be spent on the infrastructure upgrade with a view to attracting industrial investment in the state. The MVA government is also planning to reduce power tariff for industrial consumers, with a view to further incentivizing new industries to set up shop in the western state.
Peak demand
During the first eight months (April to November) of ongoing FY21, Maharashtra had a peak electricity demand of 22,903 mw, the highest for any state other state excepting Uttar Pradesh (23,797 mw). In the same period, the energy (electricity) requirement of Maharashtra was 94,019 million kwh that was the highest for any state. Incidentally, this energy requirement was almost entirely met. Maharashtra had a national share of 11.3 per cent in the total electricity consumed nationally, during the first eight months of FY21.
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