Government to Provide Cheap Electricity to Farmers and Domestic Consumers


By Robin Kumar Attri

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The state's electricity subsidies aim to ease financial strain for farmers and households, promoting sustainable energy access.

Key Highlights

The state government has unveiled plans to provide affordable electricity to farmers and domestic consumers across the state. This initiative aims to ease the financial burden on these groups, ensuring they can access electricity at reduced rates during the financial year 2024-25. A significant subsidy amounting to approximately Rs 24,420.08 crore will be allocated to power companies to support this effort.

Subsidies and Schemes

The subsidy will be implemented through several schemes including the Atal Griha Jyoti Yojana, Atal Krishi Jyoti Yojana, Tariff Subsidy, and Free Electricity Supply Scheme. These initiatives will particularly benefit farmers, providing subsidies on agriculture or agricultural pumps of different capacities.

Electricity Rates for Farmers

Farmers using permanent agricultural pumps up to 10 horsepower will pay a flat rate of Rs. 750 per horsepower per year, with the government providing a subsidy of Rs. 11,943.98 crore. For pumps exceeding 10 horsepower, the rate will be Rs. 1,500 per horsepower per year, supported by a subsidy of Rs. 969.31 crore.

Breakdown of Subsidies

The government will allocate Rs. 50.63 crore for metered permanent agricultural pump consumers up to 10 horsepower and Rs. 3.22 crore for those above 10 horsepower. Additionally, Rs. 371.49 crore is earmarked for temporary agricultural pump connections, and Rs. 5,009.73 crore will cover free electricity supply to Scheduled Caste and Scheduled Tribe farmers with pumps up to 5 horsepower and land up to one hectare.

Subsidies for Domestic Consumers

Domestic consumers using up to 150 units per month will benefit from a subsidy totaling Rs. 5,866.26 crore. This will ensure that consumers are billed a maximum of Rs. 100 for the first 100 units monthly. Scheduled Caste and Scheduled Tribe households below the poverty line will receive 30 units at a nominal rate of Rs. 25 per month, supported by a subsidy of Rs. 36 lakh.

Subsidies for Farmers' Pump Sets

Farmers in Madhya Pradesh will continue to receive subsidies on electric or diesel pump sets for irrigation purposes. These subsidies cover up to 50% of the cost for pump sets, and 60% for solar pumps, with equal contributions from the Central and State Governments for the latter. Conditions apply, including the requirement that no electricity subsidy will be provided if an electric pump is later installed on the same land where a solar pump was subsidized.

This comprehensive support package underscores the state government's commitment to providing affordable electricity to its citizens, thereby promoting agricultural productivity and improving living standards.

Also Read: - Farmers to Get Paddy Seeds at 90% Subsidy

CMV360 Says

The state government's substantial subsidies on electricity aim to alleviate financial burdens for farmers and domestic consumers in Madhya Pradesh. By reducing electricity costs and promoting sustainable energy practices through various schemes, the initiative not only supports agricultural productivity but also enhances living conditions across the state. This commitment reflects a proactive approach towards ensuring accessible and affordable electricity for all segments of society.