Following Arvind Kejriwal-led Delhi Government's footsteps, the Government of Maharashtra on Monday also announced its decision to cut power tariffs by 20 per cent.

The power tariff cut will benefit nearly 90 per cent of consumers across categories like domestic, commercial and agriculture, in the state.

Domestic consumers consuming zero to 100 units of power will have their tariffs decreased from Rs 4.16 per unit to Rs 3.36 per unit, while those who are consuming 100 to 300 units will see their tariff coming down from Rs 7.42 per unit to Rs 6.05 per unit.  The fixed charge of Rs 40 per month will, however, continue as it is.

In Mumbai, the decision will benefit consumers in specific areas like Saki Naki, Powai, Bhandup, Kanjurmarg and Mulund, where MSEB supplies power.  Consumers who receive electricity from private-sector firms Tata Power and Reliance Infrastructure will not be benefitted by the decision.

The decision will increase the total subsidy burden by Rs 706 crore per month.  While the state government will bear the addition burden of Rs 606 crore, the remaining Rs 100 crore will be borne by the Maharashtra State Electricity Transmission Company and Maharashtra State Power Generation Company.

Announcing the decision, Maharashtra CM Prithviraj Chavan also claimed that it was not a copycat decision, adding that they had formed a committee to recommend a possible tariff cut as far back as November 19, 2013.