Maharashtra Power Looms Face Closure Threat Amid Electricity Tariff Hike
A recent hike in industrial electricity tariffs by Mahavitaran, as per the new 'multi-year tariff order' issued by the Maharashtra Electricity Regulatory Commission (MERC), has dealt a severe blow to power loom entrepreneurs across the state. The revised tariff structure is expected to significantly impact micro, small, and medium enterprises (MSMEs), especially those dependent on high-voltage and low-voltage electricity.
According to the new order, the cost of electricity per unit will increase by ₹1 to ₹1.30. This rise is expected to cause serious financial strain for many small-scale businesses. Industry experts and electricity consumer associations have raised concerns that the worst-hit sector will be the power loom industry, particularly in textile hubs such as Ichalkaranji, Bhiwandi, Malegaon, Sangli, Vasai, Thane, Palghar, and Solapur.
Despite efforts by entrepreneurs to align with the government's 'self-reliant industry' policy by adopting solar energy and other alternative power solutions, the impact of the tariff hike extends to these initiatives as well. Business owners warn that the increased electricity rates could indirectly hinder the use of solar power, making their operations less sustainable.
The new tariff structure includes several additional charges and mechanisms such as demand charges, energy charges, transmission charges, time-of-day tariffs, unit and kVAH-based billing, and power factor incentives. These complexities, combined with rising costs, are adding to the burden on already struggling industries.
Javid Momin, Secretary of the Maharashtra Electricity Consumers Association, stated, “This hike threatens the survival of the existing power loom industry. If these industries shut down, it could lead to widespread job losses and a severe impact on the state's economy.”
In response, industry leaders and trade associations have urged the state government to reconsider the tariff hike and are demanding special concessions for MSMEs to prevent a large-scale collapse. The call for relief is growing louder as small and medium enterprises fear closure under mounting financial pressure.