To reduce power consumption and subsidies granted to agricultural consumers, the state government is planning to bring in energy-efficient agricultural pumps for farmers. This will reduce the electricity demand of around 40 lakh agricultural consumers, who make up around 23% of the power requirement. Metered and un-metered agricultural consumers are charged tariffs largely based on the installed horse power (HP) capacity of their pumps, and are heavily cross-subsidised by the utility’s other classes of consumers like industrial and commercial users.
Use of energy efficient water pumps in farmsteads will reduce the cross subsidy burden on industrial consumers and consequently, their electricity tariffs. The lowering of power rates will boost industries in Maharashtra, which rue that neighbouring states have lower tariffs.