In Maharashtra, a sharp increase in the additional tax on electricity sold to commercial and industrial users has been announced. The state government decided to nearly double the levy, known as the additional tax on the sale of electricity (Tose), in order to secure funds for its ambitious solar pump distribution programme under the PM Kusum scheme.
Officials explained that the rise was aimed at covering financial shortfalls as the state faces mounting pressure from welfare schemes that have drained the exchequer. The measure will generate an extra ₹834 crore annually by raising the tax by 9.90 paise per unit. Previously, consumers in these categories were paying 11.04 paise per unit. With the new hike, the total collection from such consumers is projected to exceed ₹3,591 crore over the next two years.
Government representatives were quoted as saying that Maharashtra’s financial troubles worsened after a series of populist schemes announced before last year’s elections. The Ladki Bahin Yojana alone carries an annual cost of about ₹36,000 crore, while free electricity to farmers for agricultural pumps adds another ₹14,700 crore burden. Despite these expenses, the state is still obligated to execute centrally sponsored initiatives, including PM Kusum, which mandates the installation of 5.5 lakh solar pumps by March 2026. So far, 4,23,510 pumps have been installed, while 1,26,490 are still pending.
The programme is being rolled out through Mahavitaran, the state-run power distributor, and Mahaurja, which handles renewable energy initiatives. Officials noted that the tax already generated ₹930 crore annually at the earlier rate, but the increase was necessary to meet deadlines.
Not all reactions have been positive. Energy analyst Ashok Pendse criticised the move, remarking that commercial and industrial consumers already face higher electricity tariffs than others. He pointed out that while the government claimed recently that power charges in Maharashtra were declining, this additional burden contradicted that assertion. According to him, businesses consuming large amounts of electricity would be hardest hit.
The hike will remain effective for two years, during which time the government hopes to close the gap on its solar pump installation targets. The move reflects the state’s balancing act between sustaining welfare commitments and meeting renewable energy obligations, but it has sparked debate over fairness and the strain placed on industry at a time of economic uncertainty.