Deputy Chief Minister Devendra Fadnavis again dropped hints about notifying the new power subsidy scheme for industries in Vidarbha and Marathwada region of Maharashtra. Fadnavis who also holds the Energy portfolio said that the new policy will be notified shortly, before the announcement of general elections. He made the announcement on Friday while speaking during the signing of MoU held in an upscale city hotel about setting up of a distillery in Butibori MIDC here. Industry captains are waiting for the final contours, as already, they have approached High Court seeking restoration of power subsidy that was stopped midway by earlier dispensation at the State. The earlier policy of power subsidy was announced during tenure of Chief Ministership of Devendra Fadnavis. Therein, a sum of Rs 1200 crore was earmarked for providing subsidy in power bills to industries in Vidarbha and Marathwada that are categorised as backward owing to backlog of development, compared to other prosperous regions of the State. The subsidy element was to ensure that industries in the backward region can compete as power bill is a main factor in final pricing of the product.

 

However, the scheme implemented by Maharashtra State Electricity Distribution Company Limited (MSEDCL) had one major lacunae which was liberally milked by few unscrupulous industries allegedly in collusion with babudom resulting in its abortion midway. The scheme was to run till 2024 as was announced by State Government but as some industries allegedly misutilised the subsidy, the entire amount earmarked in the budget was emptied. The scam allegedly was perpetuated by some steel industries in Jalna region and same was later uncovered by the vigilance. Aggrieved by the stoppage of the subsidy, Vidarbha Industries Association (VIA) filed a PIL in Nagpur Bench of Bombay High Court, over which, State Government’s negative stance came to fore as for two years, it did not bother to file its reply. VIA mentioned that while Rs 1200 crore was earmarked for power subsidy, only Rs 600 crore was utilised and hence the scheme should be revived.

 

The case is still subjudice and in the meantime, Dy Chief Minister indicated that State is actively considering reviving the power subsidy scheme that would benefit the people in the region. VIA, in its affidavit, mentioned that considering the applicability of power subsidy, many industries invested heavy capital in upgrading their infrastructure and also went for capacity addition. Now, due to sudden stoppage of the power subsidy, the industry are bearing the interest burden and hence sought Court’s intervention. Meanwhile, VIA while submitting its memorandum to State Government, regarding the power subsidy has suggested a caveat, seeking a cap on individual subsidy applicable to individual industries. This component would ensure that there is no misuse of the subsidy and it would last the entire period as envisioned in the policy.