We evaluate industrial demand-side management (DSM) options using utility avoided costs, including long-term marginal costs of power generation, transmission and distribution in Maharashtra. Implementation of DSM options will save 1570 MW of peak demand and 12,510 GWh of energy by 2000 AD. The marginal savings to the utility will be Rs. 56,580 million (MM) and the savings to the customer, due to reduced energy bills, will be Rs. 36,210 MM.