Reportedly, Maharashtra State Electricity Distribution Company Limited (MSEDCL) has planned to complete the demerger of its agriculture business by April 2026 ahead of a proposed initial public offering (IPO) targeted for December 2026.
The agriculture segment will be carved out as a separate company, not a subsidiary, to ensure its liabilities do not remain on the balance sheet of the core distribution utility. MSEDCL has total dues of about Rs 960 billion of which nearly Rs 760 bilion relates to unpaid agricultural consumption. The accumulation of arrears has increased working capital borrowings and financial strain despite the core distribution business being operationally viable. Post-demerger, the residual entity is expected to retain debt of roughly Rs 200 billion.