1,000 cr for industries in backward areas

MUMBAI: To accelerate growth in the State’s underdeveloped regions, the government approved a Rs 1,000-crore package to bring down power tariffs for industries in these areas.

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The package will subsidise power bills for industries in Vidarbha, Marathwada, parts of Northern and Western Maharashtra and the Konkan, which have failed to attract substantial investment. Its timing is significant as industries recently petitioned the government to lower rates and threatened to move out of the state otherwise.

Energy minister Chandrashekhar Bawankule said, “Traditionally, industries are concentrated in Mumbai, Pune and Nasik. Power is one of the biggest costs of running an industry and with that resolved through this package, we hope these areas see similar levels of industrialization .”

The waiver, applicable retrospectively since April, comes in four different categories. For new industries, the government will waive between 50 paise and 75 paise per unit. For existing industries, the waiver will depend on the power consumed.

Government officials said the move will create jobs and boost economic development. They added that giving Vidarbha more industries will compensate for the pollution it faces due to large-scale power generation.

Low levels of industrialization have been seen as a major factor for the regions’ poor economic growth.

The Vijay Kelkar committee - appointed by the state to suggest ways of reducing the regional developmental backlog - found in 2013 that the Per Capita Income (PCI) of Marathwada was 40 per cent lower than the rest of Maharashtra. Vidarbha’s PCI was 27 per cent lower.