The State government on Tuesday extended the electricity bill waiver scheme for industries in Marathwada and Vidarbha by five more years. This decision will put a ₹600-crore burden on the State exchequer.

The move is among a set of sops announced ahead of State Assembly elections to be held in four months’ time, and marks a consolidation of the ruling Bharatiya Janata Party’s recent victory in the Lok Sabha elections.

“The reason for this scheme is to encourage more businesses come to Vidarbha and Marathwada and for the region’s industrial development,” said Power Minister Chandrashekhar Bawankule.

The Industrial Policy 2019 had announced a power bill waiver to micro, small and medium industries in C, D, D+ (State rankings based on the need for industrial improvement) and Naxal-affected areas.

The Cabinet’s latest proposal applies to industries not mentioned in the policy.

Mr. Bawankule said the scheme has till date resulted in an improvement in employment and an increase in the number of industries in Vidarbha and Marathwada in the past five years.

“Out of the total ₹2,17,774.1 crore investment in the State’s power sector, Vidarbha-Marathwada has received the investment of ₹1,57,204.1 crore,” said the minister.

Both the regions are industrially underdeveloped. “In the era of cut-throat competition in businesses, we think this will give a boost to businesses in Marathwada and Vidarbha,” said Mr Bawankule.

In the 2019 general elections, the BJP and Shiv Sena swept the Marathwada region while losing two seats in Vidarbha.