Nagpur, India: Maharashtra State Electricity Distribution Company Limited (MSEDCL) plans to create a separate company to handle power supply for agricultural consumers by April 2028. The proposal was included in the multi-year tariff (MYT) petition submitted to the Maharashtra Energy Regulatory Commission (MERC) in January 2025. The aim is to ensure better management and accountability for agricultural power supply.

MSEDCL mentioned that the process of separating the agricultural feeder network is already underway. However, forming a new company requires approval from the State Government. MERC also has the authority to direct the formation of a separate entity for this purpose. Maharashtra has around 45 lakh agricultural consumers, contributing 29% of the total electricity consumption. 

The plan suggests that from April 1, 2028, after the current tariff period ends, the new company can take over agricultural power distribution. This move is expected to reduce the cross-subsidy burden on industrial and commercial consumers, who currently pay higher tariffs. MERC, in its March 2023 order, had earlier directed MSEDCL to consider forming a separate agricultural company and asked the State Government to study Discom operations and prepare a time-bound improvement plan.

A separate company would improve monitoring, ensure better energy accounting, and provide higher quality power to agricultural consumers. During tariff hearings, consumer representatives often challenged MSEDCL’s claims of high consumption in the agricultural sector, citing a large number of unmetered connections. A dedicated company would focus on metering, billing, and collection, reducing technical and commercial losses.

MSEDCL is also working on solarising 2,782 agricultural feeders under the Mukhyamantri Saur Krushi Vahini Yojana 2.0 to provide 8-hour daytime power supply. By December 2025, around 30% of agricultural feeders are expected to switch to solar power. MSEDCL plans to install 9,155 MW of solar capacity at an investment of ₹1,181.37 crore. The company has already signed agreements with EESL for 200 MW of solar power at ₹3 per unit for 25 years.

The formation of a separate company for agricultural consumers is expected to enhance operational efficiency and reduce the financial burden on industrial and commercial sectors.