Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is preparing for a public market listing by restructuring its business, as per Mint reports.
The company will hive off its agricultural power segment and associated dues to improve financial viability and investor appeal.
MSEDCL, also known as Mahavitaran, will separate its agricultural power supply operations into a new private entity. This new unit will absorb ₹75,000 crore in outstanding payments from farmers, stated Lokesh Chandra, the chairman and managing director of MSEDCL.
The remaining profitable operations, focusing on residential and industrial power supply, will be listed on the stock exchanges. The objective is to simplify the business structure and present cleaner financials to potential investors.
The company currently carries a total debt burden of ₹98,000 crore. The split will allow MSEDCL to redistribute this debt strategically between the newly formed agricultural entity and the public-facing company.
The company has also requested capital support from the Maharashtra government to ease the financial pressure. With the transfer of outstanding agricultural dues, MSEDCL expects enhanced tariff collection efficiency exceeding 99% from the listed operations.
To further reduce subsidisation costs, MSEDCL has rolled out tenders for 16 GW of small-scale solar power plants located near existing substations. These units will primarily supply electricity to agricultural consumers during the daytime.
As solar energy is generated during the day, it aligns with the irrigation needs of farmers. The excess energy will be stored and traded later, helping to manage peak load and minimise costs.
By segmenting agricultural supply, MSEDCL plans to reduce the cross-subsidisation burden previously borne by industrial and commercial consumers.
With reduced procurement costs from renewables and better alignment of supply to demand, the company targets operational efficiency, focusing solely on its commercial and residential consumers.
MSEDCL’s restructuring move separates high-liability agricultural operations and integrates renewable sources for cost-effective power, creating a cleaner balance sheet for the IPO.
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Published on: Dec 26, 2025, 10:37 AM IST
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