Mumbai: The Maharashtra government has decided to provide a subsidy of ₹1.50 per unit for bagasse-based co-generation of sugar mills in the state. The decision, which was announced on March 7, 2024, is expected to provide much-needed financial relief to the sugar industry, which has been struggling financially in recent years.

The government estimates that the subsidy will help generate 1,350 megawatts of power by the end of next year. This would help to meet the growing demand for electricity in the state, which has been witnessing rapid industrial growth.

At present, there is a significant industrial development underway in the state, leading to a rising demand for electricity. Coal-based power plants contribute to air pollution issues, and various factors such as coal shortages, low-quality coal, and transit losses contribute to limitations in electricity production in the state. On the other hand, sugar production is increasing in the state, and abundant bagasse is available from sugar mills. Additionally, cogeneration plants based on bagasse reduce air pollution. The additional income from electricity production will assist farmers in the timely payment of their cane bills.