Mumbai: Maharashtra is poised to make a significant advancement in solar energy production, with plans to increase its capacity by an additional 9,200 MW within the next 14 months. This ambitious move is expected to catapult the state’s solar power generation from 3,600 MW to a formidable 12,800 MW, marking a fourfold increase.
State Power Minister Devendra Fadnavis has confirmed that work orders have been issued under the Mukhyamantri Saur Krushi Vahini Yojana-2.0. This scheme, notable for being India’s first solarisation project specifically aimed at agricultural pumps, is anticipated to halve the power purchase costs for electricity distributed to agricultural pumps. The initiative is expected to alleviate the cross-subsidy burden and reduce tariffs for industrial and commercial consumers while slashing the government’s subsidy expenditure by approximately INR 4,500 crore.
The scheme promises to revolutionise solar power deployment by generating energy close to agricultural fields, thereby eliminating reliance on long transmission lines and reducing transmission and distribution losses. According to an additional chief secretary in the energy sector, the project will significantly improve power reliability and efficiency.
With over 1 crore farmers consuming around 30% of the state’s electricity, the project is set to deliver 8-10 hours of daytime electricity to farmers across Maharashtra. The initiative faced initial challenges but has progressed through meticulous planning. The state has identified 40,000 acres of agricultural land near substations for solar installation, creating 22 special purpose vehicles to develop clusters of at least 200 MW each. Maharashtra Agro Solar, a newly established company, has overseen the collection of necessary approvals and geo-tagging of land parcels. The procurement tariff for solar power is projected at INR 3.08 per unit, significantly lower than the INR 8.7 per unit cost of thermal energy.
Maharashtra State Electricity Distribution Company Ltd (MSEDCL) Managing Director Lokesh Chandra revealed that initial bids exceeded expectations, with companies offering more than double the anticipated 4,000 MW capacity. The first 100 MW of generation is expected by the end of August, with another 1,000 MW projected by year-end. Developers completing projects before the September 2025 deadline will be eligible for incentives.
This initiative is anticipated to attract investments of INR 40,000 crore and create approximately 30,000 jobs in rural areas. The government aims to transition the entire agricultural load to renewable energy, with further tenders for an additional 5,550 MW of farmland solarisation to be announced soon. Renewable energy currently constitutes 17% of Maharashtra’s energy mix, with a projected 20% increase in the next five years.
