Expressing deep concern and disappointment over the recently announced Multi-Year Tariff (MYT) policy review order by the Maharashtra Electricity Regulatory Commission (MERC), the Vidarbha Industries Association (VIA) on Friday said that the new tariff structure will significantly increase the cost of doing business for industries. This new tariff structure, which will be implemented from FY 2025-26, will negatively impact the industries in the Vidarbha and those operating in continuous three-shift patterns will face hardship, said the entrepreneurs’ body. President of VIA Vishal Agrawal stated that “the 10 per cent increase in power cost for three-shift industries is unjustified. As per the preliminary analysis conducted by VIA’s Energy Cell, industries operating 24x7 or on three-shift models are set to witness a 8-10% increase in their overall electricity cost compared to March 2025 electric bills (last month of previous policy). This spike is attributed to a combination of - substantial hike in demand charges, impacting industries irrespective of their actual consumption,” he said.

 

Agrawal also said that increment in energy charges, especially during peak hours, will burden high-efficiency, high-capacity units. In addition to this, the changes in Time-of-Day (ToD) tariffs, where off-peak incentives have been drastically curtailed and peak hour charges increased, will mount pressure on the entrepreneurs. “This order contradicts the Government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ vision. Industrial growth needs tariff stability and predictability. Instead, we are facing a backdoor increase in effective tariffs, where initially MERC reduced tariffs and now in review completely changed it. This leaves no room for industry for absorbing such shocks in an already competitive market,” VIA stated. He further added that the industries in the textile, engineering, and foundry sectors — especially in Vidarbha — are already struggling with global competition, logistics costs, and raw material volatility. The increase in power cost will now erode whatever slim margins remain and may lead to potential closures or capacity cuts.

 

The entrepreneurs’ body further observed that the use of solar energy has been discouraged. “Another concerning aspect of the order is the severe discouragement to solar adoption through two major policy reversals:- by prohibiting night time banking of solar power and introduction of Grid Support Charges (GSC). “Until now, industries that invested in solar power plants — whether rooftop or ground-mounted — could bank their excess day-time generation and draw power at night. This was especially helpful for 24-hour manufacturing units. The new policy completely disallows night-time banking, forcing industries to either dump excess solar generation or invest heavily in battery storage — which is commercially unviable. Similarly, MERC has now levied a Grid Support Charge on the energy consumed through solar installations, especially for those above 1 MW capacity. This fee is to be paid for using the distribution infrastructure even when drawing banked or generated solar power. This defeats the very economic logic of going green, as industries are now being penalized for easing the grid's load during daytime by generating clean power,” said the body.

 

The Vidarbha Industries Association urged the MERC to roll back the punitive demand and TOD tariffs, and ensure no more than CPI-based escalation in effective cost. It also urged the regulator to reinstate night-time banking of solar energy to preserve the commercial viability of green power and scrap the Grid Support Charges or at least cap them till an independent impact assessment is conducted. VIA emphasised on holding consultations with the stakholder, especially with MSMEs and large 3-shift units, before implementing such structural changes. “Industries in Maharashtra, especially in power-surplus regions like Vidarbha, deserve a progressive and participative tariff policy. VIA stands committed to protecting the interests of regional industries and will seek redressal through formal representation and, if required, legal channels,” said VIA.