As The Maharashtra Airport Development Company (MADC), the deemed electricity distribution licensee for MIHAN, has recently proposed to hike power tariffs, consumers in the area have raised concerns over it. The consumers fear that the proposed hike will negatively impact the existing units and discourage those planning to set up their ventures in MIHAN. Entrepreneurs based in the area said MIHAN will lose its status of a competitive industrial hub if electricity costs rise substantially. MADC has filed a Multi-Year Tariff (MYT) petition before the Maharashtra Electricity Regulatory Commission (MERC) for the period FY 2026-27 to FY 2029-30 as per the directions of the Supreme Court and the Appellate Tribunal for Electricity (APTEL), which require all regulatory assets and revenue gaps to be cleared by March 31, 2028.

 

According to MADC’s proposal, power charges for the consumers in the area would increase for the first two years to recover accumulated revenue gaps before reducing in the following two years. At present the average tariffs are approximately Rs 6.76 per unit. However, if the proposed rates are approved the same rates will rise up to Rs 11.53 per unit. It is important to note that the subsidised power rates and other incentives are the main reasons for industrial growth of MIHAN. Many entrepreneurs believe that the inflated powerc rates will severely impact production costs of the industrial units in the area and also affect employment opportunities in coming days. It is important to note that the Maharashtra Electricity Regulatory Commission is expected to invite objections and suggestions from stakeholders before taking a final decision on the tariff petition.