NRHA slams MERC order, calls for its reconsideration in interest of hospitality sector
   Date :28-Jun-2025

NRHA slams MERC 
 Tejinder Singh Renu
 
Business Reporter :
 
The Nagpur Residential Hotels Association (NRHA) has expressed serious concern regarding the recent MERC Order (Case No. 75 of 2025) that reclassifies hotels from industrial to commercial electricity tariff. The association believes that this move could pose significant challenges to the hotel industry, particularly in Vidarbha, a region still striving for balanced economic development. “This decision is unfortunate for the hospitality sector, which is already navigating several post-pandemic challenges,” said Tejinder Singh Renu, President of NRHA.
 
“The change in classification and marginal increase in tariff is likely to escalate operational costs for hotels, many of which are small and medium enterprises working hard to stay afloat.” The reimbursement procedure outlined in the order requiring hoteliers to pay commercial tariffs first and then apply for refunds has raised concerns over increased procedural burden. “While we appreciate the intent to support the industry through refunds, the process as it stands appears to be time-consuming,” Renu added.