AI push, power sector revamp, disaster plan: What Maharashtra Cabinet cleared today | Mumbai News
3 min readMumbaiApr 7, 2026 05:19 PM IST
In a wide-ranging set of decisions spanning technology, power, and disaster management, the Maharashtra Cabinet Tuesday approved a new IT-AI department, a major restructuring plan for the state power utility Mahavitaran, and a World Bank-backed programme to support disaster-hit citizens.
At the centre of the Cabinet’s decisions is the creation of a separate Electronics, Information Technology and Artificial Intelligence Department, aimed at accelerating digital governance and integrating emerging technologies into public services. The existing Directorate of Information Technology will be upgraded into a Commissionerate, and a dedicated IT cadre will be created with permanent posts across departments and districts — a move officials said would improve coordination and execution of digital projects.
In a parallel push towards data-driven planning, the Cabinet cleared the conversion of the Maharashtra Remote Sensing Application Centre (MRSAC) into a company under the Companies Act, 2013. The change is expected to help accelerate the rollout of projects linked to urban planning, water conservation, agriculture, mining, and land records.
The state will also set up a new entity, the Maharashtra Geotechnology Application Centre (MahaGeoTech), to expand the use of map-based (geospatial) technology in governance. The centre is expected to support research, innovation and training programmes for students and professionals, while strengthening planning and monitoring across sectors.
Focus on power sector
The Cabinet also approved a significant restructuring plan for the Maharashtra State Electricity Distribution Company Limited (MSEDCL or Mahavitaran), signalling a key shift in the state’s power sector.
Under the plan, Mahavitaran will raise Rs 32,679 crore through government-backed bonds to ease its financial burden. The Cabinet has also cleared a proposal to list the company on the stock market. In addition, the agricultural power distribution segment will be separated from the main company.
While the government has pitched the move as a step towards improving efficiency and financial stability, the decision is likely to draw political scrutiny, particularly over concerns around privatisation and its possible impact on electricity tariffs and farmers.
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Disaster response and funding
The Cabinet also approved the Maharashtra Resilient Development Programme (MRDP), which aims to strengthen the state’s disaster response system with external funding support.
The programme includes Rs 165 crore from the World Bank and focuses on providing relief and financial support to disaster-affected citizens. This includes easier access to housing loans, credit support for micro, small and medium enterprises, and insurance coverage.
As part of the plan, flood mitigation projects will be undertaken in Kolhapur, Sangli, and Ichalkaranji, areas in the Krishna basin that face recurring flood risks. Preventive planning and infrastructure measures are expected to be put in place to reduce future damage.
