The Maharashtra government has given the go-ahead for the bifurcation of the Maharashtra State Electricity Distribution Company (MSEDCL) into two distribution companies and approved the proposal for its initial public offering (IPO).

The restructuring plans involve carving out a new distribution company (DISCOM), MSEB Solar Agro Power (MSEB SAPL), for supplying electricity to agricultural consumers. The state cabinet also decided to provide ₹25 billion (~$269.11 million) as initial capital for MSEB SAPL.

Currently, MSEB SAPL is the nodal agency for the implementation of Mukhyamantri Saur Krishi Vahini Yojana 2.0-Scheme for feeder-level solarization in the State of Maharashtra.

The bifurcation comes against the backdrop of Maharashtra leading in feeder-level solarization projects as of November 2025, with 775,000 approved and 654,695 installed under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan program.

The other DISCOM will continue to focus on supplying electricity to industrial, commercial, residential, and other non-agricultural category power consumers.

The Maharashtra government has also approved MSEDCL’s proposal to raise funds through an initial public offering. The IPO will be launched within six to nine months of completing the restructuring process.

The state government will also issue long-term bonds worth ₹326.79 billion (~$3.52 billion) to address the DISCOM’s debt and finance its efforts in smart metering, digital power distribution, and the energy transition initiative.

In its recent renewable energy policy, Maharashtra set a target to meet 65% of its power needs from renewable energy sources. DISCOMs must procure energy storage capacity equivalent to at least 100 GWh/day, or 10% of their power demand, by the financial year (FY) 2036.

To increase renewable energy procurement, Maharashtra has planned to establish 10 renewable energy industry zones by FY 2030 and 15 by FY 2036. Each zone must be at least 100 MW. The state government will allocate ₹ 5 billion (~$53.68 million) to develop these renewable energy industry zones.