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• The state government has made clear its financial inability to implement a uniform power tariff for the city, given that the cross subsidy to make the uniformity feasible would run into crores — approximately Rs2,000 crore.

• It was only last week that the government took the decision to scrap the proposal, announced deputy chief minister and energy minister Ajit Pawar in the lower house on Thursday.

• Following the announcement, consumers will have to bear the variable rates for the power they consume in different parts of the city. Stating that the government was in no position of bearing the cost towards cross subsidy, Pawar said,“PricewaterhouseCoopers, the agency appointed to check the feasibility of implementing the uniform tariff rate, has turned down the proposal in its report submitted last July.”

• However, MLAs from Mumbai vowed to continue demanding a uniform power tariff across the city, like it is in New Delhi. Bala Nandgoankar of Maharashtra Navnirman Sena said, “While Tata Power and MSEB charge little more than Rs4 per unit, R-Infra has been charging more than Rs7 per unit.” Soon after hepointed to the uniformity of tariff in in Delhi, other city MLAs cutting across party lines joined in to demanding uniform tariff in the city. Despite Pawar turning down the possibility, the MLAsdemanded a meeting with experts for deliberation on the issue.

• However, ruling out the possibility, Pawar said, “The state government has been bearing the cost of Rs3,500 crore towards subsidy for powerlooms and agriculture bills. And another burden of Rs2,000 (aimed towards at power parity) was just not possible.” While admitting the demand of a meeting of Mumbai MLAs on the issue before the budget session ends on April 20, he added, “Moreover, if the uniformity of power rates is introduced in Mumbai, other cities and towns will soon follow suit in demanding the same, and the government would not be in a position to bear the expenditure.”

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