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Maharashtra Cabinet Clears New IT-AI Department

Mumbai: The Maharashtra Cabinet on Tuesday approved a World Bank-backed program aimed at creating a new Information Technology and Artificial Intelligence department, major restructuring of state power utility Mahavitaran and strengthening disaster response mechanisms.

The Maharashtra Resilient Development Program (MRDP), designed to improve the state’s disaster management system, will receive Rs 165 million as external assistance from the World Bank. The decisions were taken at the Cabinet meeting held at Sahyadri Guest House under the chairmanship of Chief Minister Devendra Fadnavis.

As part of the administrative overhaul, the government has authorized the setting up of a separate Department of Electronics, Information Technology and Artificial Intelligence to accelerate the vision of ‘Viksit Maharashtra’. Existing IT functions under the General Management Department will now be shaped to form the new unit.

According to the Prime Minister’s Office, the plan includes creation of a dedicated IT cadre with permanent posts in Mantralaya, commissions and regional offices. The current IT Directorate will be restructured and a new Electronics, IT and Artificial Intelligence Commissionerate will be created with 77 new staff. A further 427 roles will be added under the independent IT staff to handle technical functions across government departments.

The cabinet also approved recruitment of 389 technical personnel through external agencies for project management and monitoring and formation of a Maharashtra e-Task Team (MeMT). An internship program will be launched for 200 engineering graduates in order to provide a qualified workforce to the new department. The annual expenditure for the new missions has been pegged at ₹133.35 crore.

The new department aims to increase transparency, reduce manual intervention and strengthen e-governance, a senior official said. “The government plans to expand access to online public services, improve administrative efficiency and integrate new technologies to meet developmental needs. The ministry will facilitate data-driven decision-making, cybersecurity and promote the convergence of traditional knowledge with modern technology in sectors such as agriculture, health and renewable energy,” the official said.

In a major decision, the cabinet has approved the restructuring of the Maharashtra State Electricity Distribution Company Limited (MSEDCL) by splitting it into two entities, one for non-agricultural consumers and the other MSEB Solar Agro Power Ltd dedicated to agricultural supplies. The IPO of the non-farm entity was also approved.

The government has approved listing of non-farm distribution business in the capital market, an official said. MSEDCL currently carries government-backed debt of around ₹32,679 crore raised for infrastructure projects. To overcome this burden, the government will issue long-term bonds with a maturity of 15 years; This move is expected to strengthen the utility’s financial position.

The cabinet also approved conversion of the Maharashtra Remote Sensing Application Center (MRSAC) into a Section 8 company under the Companies Act, 2013; this company replaced its earlier registration under the Societies Act 1860. Founded in 1988, MRSAC supports projects in urban planning, water conservation, agriculture and mine management. This shift will enable greater integration of artificial intelligence, machine learning, Internet of Things and cloud-based technologies. The company will be headquartered in Nagpur and will be headed by the General Secretary.

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