Mumbai: In a major relief for farmers, the Maharashtra Cabinet chaired by Chief Minister Devendra Fadnavis on Tuesday approved the extension of the electricity tariff subsidy for ultra-high pressure, high pressure and low pressure lift irrigation schemes till March 31, 2027.

The move will benefit around 1,789 lift irrigation schemes across the state, significantly reducing costs for farmers and supporting agricultural productivity.

Under the extended scheme, concessional electricity tariffs will continue at ₹1.16 per unit with a fixed rate of ₹25 per month (per KVA) for ultra-high pressure and high-pressure lift irrigation consumers, while low-pressure scheme users will pay Re 1 per unit with a fixed rate of ₹15 per month (per horsepower).

The government will compensate state-run Mahavitaran for the revenue deficit, with payments of ₹886.15 crore allocated for 2025–26 and ₹872.23 crore for 2026–27. Officials said the subsidy has already played a key role in ensuring water supply for crops, boosting farm incomes, and improving the standard of living of rural communities.

In addition, the cabinet approved borrowing ₹2,000 crore from HUDCO under the Maharashtra Urban Infrastructure Development Loan Scheme to support multiple civic projects.

This includes ₹822.22 crore for a water supply project of the Chhatrapati Sambhajinagar Municipal Corporation, ₹268.84 crore for four sewage projects under the Nagpur Metropolitan Region Development Authority, and ₹116.28 crore for the Mira Bhayandar Municipal Corporation’s water supply project.

The funds will also support initiatives under the Amrut 2.0 Mission, Swachh Bharat Mission 2.0, and Maharashtra Suvarna Jayanti Nagarotthan Mahaabhiyan.

The government emphasized that the loan approval was necessary to avoid delays and ensure timely completion of crucial infrastructure works across the state.