State forms new solar co for ‘Mukhyamantri Saur Yojana 2.0’

Staff Reporter

For achieving target of 7,000 MW solar power generation by end of 2025, Maharashtra State Electricity Board (MSEB) has decided to set up a new subsidiary, MSEB Solar Agro Power Limited. The separate solar company is specially meant for meeting the power demand of agriculture consumers, especially providing them the day time supply. Maharashtra Government issued an order on May 8, 2023, about forming the new subsidiary for effective implementation of Mukhyamantri Saur Urja Krushi Vahini- 2.0 (Mission-2025) wherein it has promised day time 8-hour power supply to agriculture feeders in the State.

The solar company is a special purpose vehicle (SPV) with limited mandate, overseeing implementation of Mukhyamantri Saur Krushi Vahini. The company will have three Directors: Abha Shukla, Principal Secretary, Energy; Balasaheb Thite, Director, Finance, MSEB Holding Company, and Chandrashekhar Gadre, Chief General Manager of MSEDCL. After Maharashtra Government framed th new policy for aggressively rolling out solar scheme for farmers, a separate entity was necessary to sort out legal issues and arrange finance and look after other aspects. The first meeting of Board of Directors was held on June 7 where the broad outline of the company was framed. The company came into existence on May 31, 2023. The day time power supply would help farmers tide over a major problem of night camp in their farms for watering the crops. At present there is weekly roster for power supply during day time to agri feeders that have been separated from the village feeders. The separate was done to avoid load-shedding that was troubling the village populace for many years.

Now, the day time power supply is provided every alternate week. But power supply during night comes with its own set of problems as farmers have to bear with animal attacks. The problem is more acute in farms adjoining jungle areas, especially in Vidarbha where wild animals are known to stray into village territory due to rise in their numbers. Therefore, the solar policy was adopted wherein State Government is subsiding supply of solar pump from 3.5 HP to 7.5 HP to farmers. Also, a new policy was adopted for erecting solar stations nearer to farms to avoid long distance that also results in transmission losses. For the same Energy Department is providing attractive rental for leasing their land for erection of solar plants in hinterland.

It may be recalled that Maharashtra Electricity Regulatory Commission (MERC) in its latest order on truing up of MSEDCL accounts had advised State Government to form a separate company for meeting the power supply demand of farmers. The suggestion came against backdrop of MSEDCL passing of losses on agricultural account to other power consumers, especially industrial who are bearing the cost of cross subsidy. The industry has been vociferously opposing the cross subsidy burden claiming it makes difficult to stay competitive in the light of high power tariff.