Electricity subsidy to 7000 companies stopped for more than six months

Aurangabad, July 30:

In order to boost the industrial development in the region and eliminate the backlog of the Marathwada and Vidarbha, it was decided to give concession in electricity bills to industries. As a result, 7000 industries in Aurangabad and other districts were getting benefits of 5 to 7 per cent through subsidy. However, for the last six months, the state energy department has stopped giving concessions to the industries.

The scheme was announced by the then energy minister Chandrashekhar Bawankule in 2019 for a period of five years and will end in 2025. The present government has set aside Rs 1,200 crore in the current budget for the scheme. Initially, the scheme benefited a large number of entrepreneurs from both regions. Moreover, the move also boosted investments. But the concession under the scheme was stopped in January 2021. Since then, not even a single company has received any benefit. Dr Raut was in the city last month. When asked by the reporters, he confirmed that the scheme has not been discontinued and implementation will start soon. But industrialists informed that nothing has been done since the announcement. According to sources, several complaints were made to the state government regarding the concessions. It was alleged that the steel industries and power consuming industries were getting more concessions. However, it was clearly stated by the government that the steel industry and power consuming industries would receive benefits. But the complaints led to the suspension of the scheme.

Benefit to thousands of companies

The scheme is benefiting around 7,000 companies in Marathwada and Vidarbha. The companies in Marathwada receive a combined monthly concession in electricity of Rs 30 to 35 crore. The scheme has also boosted investment in the state and also prompted companies to expand their units.

Five member committee

The MSEDCL officials said that a five-member committee has been appointed to study the subsidy distribution. A discussion was held with entrepreneurs. A report was to be submitted to the energy department within a fortnight. But the report has not been submitted yet.