"Tariff for those consuming 100 to 300 units per month in Mumbai should be on par with that of Mahavitaran tariff," Chavan said in a press conference after presentation of Interim Budget in the state legislature.
Mahavitaran or Maharashtra State Electricity Distribution Company Limited is a public sector undertaking controlled by the state government.
Chavan said he had discussed the issue of electricity rates in Mumbai with the representatives of Tata Power, Reliance Infra and BEST which supply electricity to Mumbai city and suburbs.
He hailed as "courageous" the decision to announce power subsidies to the tune of Rs 9,000 crore to industry and agriculture, and Rs 2500 crore for implementation of Food Security Act. He said the move would enable industry in the state to be in competition, in the view of global economic slowdown.
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Chavan said the power subsidies would put burden of Rs 700 crore on the State exchequer.
He informed that Rs 2700 crore has been provided to five lakh students belonging to SC/ST and OBC categories.
Chavan also criticised BJP-ruled states for opposing the Goods Services Tax (GST), which he said has affected growth.
Ajit Pawar said on the occasion that he had to present a deficit budget as the budgetary provisions were diverted for drought, hailstorm and excessive monsoon last year.
"About 8 per cent increase in income was expected. Income has not reduced but the increased targets have not been achieved," he said.
The finance minister said the focus of his interim budget is on sectors like food, employment, health and women's welfare.