Pune: Sugar mills in Maharashtra are shifting to other revenue generations as Maharashtra State Electricity Distribution Company Limited (MSEDCL) reduced the rates offered to them for power generated through their co-generation plants to Rs 4.75 per unit, reports Hindustan Times.
The MSEDCL was purchasing power from these sugar mills earlier at Rs 6.60 per unit.
According to Sugar Commissioner Shekhar Gaikwad, several sugar mills are currently generating power to fulfill their own requirements. Gaikwad mentioned that meetings were held between the sugar mills, the sugar commissioner, and MSEDCL (Maharashtra State Electricity Distribution Company Limited) during the tenure of the Maha Vikas Aghadi (MVA) government. Recently, another meeting took place with Deputy Chief Minister Devendra Fadnavis. Gaikwad added that MSEDCL believes that if they can acquire solar energy at a rate of ₹2 per unit, there is no necessity to purchase power at higher prices from the sugar mills.
During the power crisis from 2005 to 2007, several mills set up co-generation plants investing Rs 2,500 crore to boost their revenue. This helped mills to increase their income. As power generation rose the MSEDCL reduced rates offered to the sugar mills to Rs 4.75 per unit.
