Maharashtra Cabinet on Tuesday approved a proposal to buy 600 MW additional power from other states to tide over the electricity crisis in the state.
"The state government has agreed to provide upto Rs 1300 crore (Rs 13 billion) for purchasing additional power to meet the growing demand in the state, which now faces a 5,700 MW shortage," a senior official said after a Cabinet meeting in Mumbai.
There was no alternative but to go ahead with the purchase of power at a higher cost from other states to overcome the prevailing crisis, he noted.
The state government would provide the financial assistance to MahaVitaran, the power distribution company, to purchase additional electricity.
A part of this amount will be recovered from consumers in the form of higher power bills after obtaining permission from the Maharashtra Electricity Regulatory Commission, the official said.