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Ref. PR-3/Subsidy/31090                                   Date: 27/09/2005


Subject:          Subsidy in tariff to High Tension Power loom consumers for the period Year 2005 - 06.
Ref:                 MSEB’s (MSEDCL) letter no.PR-3 / Subsidy / 16257 Dt.30.05.2005.

                Government of  Maharashtra vide order dated 27.05.2005 had declared subsidised rate Rs. 1.40 p / unit for the period from dated 01.06.2005 to 31.03.2006 for Powerloom consumers. This subsidised rate is also applicable to HT Powerloom Consumers as prescribed below. 

              The State Government, as notified by the Notification dated 11/02/2004, has declared a comprehensive scheme for powerloom industry, which inter – alia prescribes that the subsidy in tariff shall be available for the powerloom industry, operating in a common shed or individual shed, and using electricity for the purpose of powerloom industry, including Humidification Plant, Kandi Machine, Compressor, etc. Since the said scheme envisages subsidy in tariff to the powerloom industry, irrespective of Low Tension or High Tension as confirmed by the State Government by its letter dated 12/07/2004, it is decided that the High Tension powerloom consumers shall also be eligible for subsidy in tariff.

            Based on the clarification in the Government Notification dated 11/02/2004 an industry undertaking operations / activities ( i.e. Warping Machine, Kandi, Machine, Yarn Winding Machine, Air Compressor, Grinding Machine, Cooling Motor / Water Pump etc.) as mentioned therein, can be considered as a powerloom industry eligible for concessional tariff. The facility of subsidized tariff is not to be given for consumers doing job works. Also, it should be noted that the subsidised tariff shall not be applicable to a consumer having only the other allied machinery of weaving preparatory without any powerloom.

An industry having any or all of the following  activities / machinery is a weaving preparatory unit and can be  considered as eligible for  subsidy in tariff, provided the said industry does also have weaving machinery (Power looms), In other words, a industry having any or all of the following mentioned weaving preparatory machinery do not have power looms in the same premises under one roof, then such industry shall not be eligible for subsidy in tariff. Further the following list of machinery may not be an exhaustive list and may also include such other machinery necessary for weaving preparatory.

a)                  Single Yarn Sizing
b)                  Twist Sizing
c)                  Warping,
d)                  Pirn Winding,
e)                  Twisting,
f)                    Yarn Dying,
g)                  Humidification Plant,
h)                  Dust Separator etc.

All the concerned field officers  are therefore informed  that, based on the guidelines as above, the eligibility criterion  for any particular industry shall be carefully ascertained before allowing subsidy in tariff as prescribed by this office letter under reference. However, pending receipt of the financial assistance from State Govt. to compensate loss of liquidity on account of said subsidy in tariff ,the benefit of the same can not be given to the respective eligible consumers in ensuing energy bills. The energy bill of such consumers shall be issued as per prevailing tariff as already approved by the MERC and message shall be printed on the energy bill indicating amount payable by the consumers as per the subsidised tariff and to be received from GOM as subsidy.

The quarterly  report  indicating HT consumer wise details  i) Bill as per MERC          ii) Amount payable by Consumers & iii) Amount to be received from Govt. shall be            sent to this office.

Executive  Director – I (Dist.-Comm.-Co. Ord.)



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