‘Mahavitaran’ should launch an IPO to boost revenue and implement corporate governance – Chief Minister Devendra Fadnavis

Mumbai, Feb 2026: Taking advantage of opportunities available in the energy sector, Maharashtra State Electricity Distribution Company Limited (Mahavitaran) should raise a permanent source of income by bringing an IPO (Initial Public Offering) and move from losses to profits, Chief Minister Devendra Fadnavis directed. He also instructed the company to strictly implement corporate governance in its operations.

Chief Minister Fadnavis stated that the Energy Department has established MSEB Solar Agro Power Limited. With the creation of this new company, the separation of agricultural sector liabilities—currently a major reason for Mahavitaran’s losses—will make Mahavitaran appear financially profitable. He further directed that the operations of this new company should commence at the earliest.

He said that the amount guaranteed by the state government for the agricultural sector should be paid to the company from funds received from the Finance Commission. The new Solar Agro Power Limited company will be provided government subsidies on behalf of the state up to a specified limit and for a fixed period. Thereafter, the company will have to generate its own sources of revenue so that it does not need to seek funds from the government in the future.

Chief Minister Fadnavis further noted that if the company enters the capital market through an IPO, substantial investment can be mobilised from shareholders, ensuring availability of funds. At present, the company has outstanding dues of ₹76,189 crore, of which ₹59,527 crore is related to the agricultural sector. To make the company financially self-reliant, there is a need for financial restructuring. He directed that the payment of ₹32,679 crore, which is in the form of government guarantees, should be undertaken in a phased manner.

As per the proposed scheme of the Government of India, efforts should be made to ensure that Mahavitaran receives 0.5 per cent of the state’s GSDP (Gross State Domestic Product). After the implementation of the proposed restructuring plan, there will be no need to seek additional funds, resulting in savings for the state government. He instructed that follow-up action should be taken with the central government to complete this process.

The meeting was attended by Chief Secretary Rajesh Aggarwal, Additional Chief Secretary (Finance) O.P. Gupta, Additional Chief Secretary (Energy) Abha Shukla, Managing Director of Mahavitaran Lokesh Chandra, and other directors. The presentation was made by Mahavitaran Managing Director Lokesh Chandra.