To address existing financial liabilities, the Government of Maharashtra will issue long-term bonds with a tenure of 15 years, amounting to approximately Rs 32,679 crore. These bonds, backed by state guarantees, are aimed at restructuring Mahavitaran’s debt and strengthening its financial position.
As part of the approved plan, MSEDCL will be restructured into two distinct entities to ensure focused operations and improved service delivery across consumer segments. The first entity will cater to industrial, commercial, domestic and other non-agricultural consumers, while the second entity—MSEB Solar Agro Power Limited (MSAPL)—will exclusively serve agricultural consumers.
The Cabinet has also approved the listing of the non-agricultural distribution business through an Initial Public Offering (IPO).
MSAPL will play a pivotal role in strengthening the agricultural power ecosystem, with a dedicated focus on providing reliable electricity supply to farmers and accelerating the adoption of solar-based energy solutions in the sector. This initiative aligns with the state government’s flagship Mukhyamantri Saur Krishi Vahini Yojana 2.0, aimed at promoting sustainable and decentralized solar power generation for agriculture.
The IPO is proposed to be launched within six to nine months following the completion of the restructuring process and will comprise a combination of fresh equity issuance and an offer for sale by the state government.
“This restructuring marks a decisive step towards building a future-ready power distribution ecosystem for Maharashtra. By creating focused entities and unlocking value through the proposed IPO, we are not only strengthening financial resilience but also ensuring reliable, sustainable and sector-specific energy solutions—especially for our farmers. Our vision is clear: Efficiency, transparency and long-term growth that benefits every consumer we serve,” Lokesh Chandra, Chairman and Managing Director, MSEDCL, said in a statement.
