Maharashtra sugar mills may have to settle for less price for the power they generate

PUNE: Maharashtra chief minister Devendra Fadanvis assured the sugar industry of the state of speeding up the process purchasing electricity produced by the co-generation units attached to the sugar mills. However, he asked the mills to get ready for a probable downward revision in the purchase price of the power.

The CM was speaking as the chief guest of the annual price distribution ceremony of Pune-based Vasantdada Sugar Institute, headed by former Union agriculture minister Sharad Pawar.

The state government has not renewed the power purchase agreements (PPA) with the sugar mills, which have invested heavily to set up the co-generation units.

"We have been cross subsiding the electricity provided to agriculture by charging more to the industries. As a result, industries have started shifting to neighbouring states like Andhra Pradesh, Karnataka etc. Hence, to reduce the burden on the industry, we have to buy electricity at optimum price," said Fadanvis.

Dismissing state's sugar industry's fears of lack of government support, Fadanvis assured continued support from the state and central governments. Maharashtra's sugar industry is mainly concentrated in the co-operative controlled by Congress and the Nationalist Congress Party.