Power subsidy to go into farmers’ bank accounts; nod for pilot project

990 TO BE COVERED Farmers to get bills for electricity, be allowed to keep surplus subsidy

CHANDIGARH: In a move that is being seen as ‘anti-farmer’, the state council of ministers on Wednesday approved a proposal to pass on direct benefit of free power to agricultural tubewells into farmers’ accounts. In a pilot project, 990 farmers will get the benefit under six rural feeders.

The state government says the move is aimed at saving the state’s subsoil water.

“The decision is anti-farmer. The government in the long run wants to impose bills on tubewells,” said Balbir Singh Rajewal, president of a faction of Bharatiya Kisan Union.

He said, “The government wants us to shift focus from its failure on debt waiver delivery and get hooked to a new issue.”

Finance minister Manpreet Singh Badal said the government will transfer Rs 48,000 to a farmer’s account for each tubewell, calculated by taking into account number of tubewells (14 lakh) and annual subsidy for pumpsets (Rs 6,200 crore). The Punjab State Power Corporation Limited (PSPCL) has tied up with J-PAL South Asia and the World Bank to evaluate the move.

As per the decision, beneficiary farmers will be paid subsidy in cash, based on cost of power for irrigating the crops as finalised by experts from Punjab Agricultural University, Punjab State Farmers Commission and the agriculture and water resources departments. The farmers would be issued bills for electricity and allowed to retain the savings – subsidy minus the bill amount.

“The move would not put financial burden on the farmers. Rather, it would lead to monetary

savings and conservation of water,” chief minister Capt Amarinder Singh told the cabinet.

An option has been given to big farmers to give up their agricultural subsidy or at least 50% of it and they would be charged Rs 202 per BHP per month or Rs 403 per BHP per month, respectively.

Voluntary surrender of power

subsidy by agriculture consumers will reduce the subsidy burden of the state, said the CM, appealing to big farmers to take initiative. The cabinet noted that if 1% farmers voluntarily opt to give up 50% subsidy, it will reduce subsidy burden by Rs 35 crore a year. The CM has already surrendered subsidy.