Holistic view needed – Agriculture is pulling down power sector reforms


Holistic view needed – Agriculture is pulling down power sector reforms

Maharashtra, otherwise among the more developed states in India, is a classic case of why the power sector has not taken off in India despite two-and-a-half decades of economic liberalisation. Consumers are simply not prepared to pay for using electricity and the country’s mammoth power distribution system is in a mess.

The Maharashtra government may have to bail out its cash-strapped electricity distribution company MahaVitaran in view of rising arrears, which come mainly from agricultural consumers. MahaVitaran’s total arrears have increased from Rs 32,627 crore in 2017-18 to Rs 40,278 crore in 2018-19. Of this sum, the rise in dues from agriculture consumers alone is Rs 30,199 crore!

MahaVitaran’s total consumer base of 2.60 crore includes 43 lakh agriculture consumers. There has been a sharp growth in electricity usage in India’s agriculture sector Read More

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