Supply Subsidised Electricity To Mihan Investors: Government To Madc

Supply subsidised electricity to Mihan investors: Government to MADCMUMBAI: Multi-modal International Cargo Hub and Airport at Nagpur (Mihan) project is likely to get a new boost as the government has asked Maharashtra Airport Development Company to supply electricity to the investors at subsidised rates.



Chief Minister Prithviraj Chavan on Friday asked the development company to purchase electricity from the exchanges or enter into short-term agreements with power producers for supplying electricity to the investors who have set up their businesses at Mihan.



"We have been notified as a distribution licensee for MADC SEZ area by the Maharashtra Electricity Regulatory Commission (MERC) in December last year.



"As per the CM's direction, we will buy power from various sources and supply at subsidised rates to ensure projects are not stalled," MADC Vice-Chairman and Managing Director Tanaji Satre told PTI here.



Chavan has said the electricity supplied by MADC will be almost 30-35 per cent cheaper compared to that supplied by state discom Mahavitaran.



The move comes after certain investors stalled operations due to higher electricity costs.



Investors include Air India. Air India is setting up an maintenance, repair and overhaul (MRO) at Mihan.



In November 2007, MADC and Abhijeet Group signed an agreement, wherein the two were to form a joint venture to set up a power plant for supplying power solely to the industries located inside Mihan at rate of Rs 2.97 per unit.



Mahavitaran, however, has been offlate supplying power to these units at over Rs 10 per unit.



Source:- economictimes.indiatimes.com