Mumbai’s Maharashtra government has just approved a small but significant bump in electricity taxes for businesses and industries. Chief Minister Devendra Fadnavis led the cabinet meeting on Tuesday, where they decided to raise the additional tax on electricity sales by 9.90 paise per unit. This change affects customers of private power companies and the state-owned Mahavitaran, pushing the rate from 11.04 paise to 20.94 paise per unit.
The extra revenue will fuel the Pradhan Mantri KUSUM Component-B scheme, a key initiative to bring solar power to farmers across India. This program helps farmers run their irrigation pumps during the day with reliable, clean electricity, cutting down on diesel use in remote areas.
Maharashtra plans to install a whopping 6.50 lakh solar agricultural pumps statewide. So far, the state has already set up over 4.23 lakh of them, with 2.27 lakh more to go by March 2026. To make that happen, the government needs about Rs 3,591.38 crore in funding.
With this tax hike, officials expect to collect Rs 147 crore every month—or Rs 1,764 crore a year—from industrial and commercial users. “This boost ensures we have the money to roll out the scheme smoothly,” a government statement noted.
The PM-KUSUM scheme, short for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, promotes renewable energy by replacing old diesel pumps with solar ones in off-grid spots. Farmers get solid financial help: the central government covers 30% of the pump’s benchmark cost as a subsidy, and another 30% can come as a low-interest loan. The state chips in with even more support to keep costs down.
These solar pumps are capped at 7.5 horsepower for full subsidies, but farmers can opt for bigger ones if they’re willing to pay the difference. This push not only makes irrigation easier and greener but also supports Maharashtra’s goal of sustainable farming and reducing reliance on fossil fuels.
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