Punjab’s free power policy highly regressive, benefits only big farmers

CHANDIGARH: Former deputy chairman of planning commission Montek Singh Ahluwalia has termed Punjab’s policy of free power to agriculture sector as “highly regressive” as it benefits only big farmers. In a report submitted to the Punjab government, Ahluwalia has also asked it to gradually reduce procurement of paddy from the extremely waterstressed areas, a suggestion which is expected to receive a sharp reaction from farmer community.

The free power largesse --incurring an annual burden of Rs 6,500 crore on the cash-strapped government --- has remained a sensitive political issue in Punjab, with no regime really being able to do away with the populist measure ever since it was announced in 1996. Punjab chief minister Capt Amarinder Singh had sought suggestions from the expert group, led by Ahluwalia, on ‘medium and long term POSTCOVID economic strategy for Punjab’. The report lists out three damaging consequences of free power policy. “It has led to an unsustainable burden on the budget and limits the state government’s ability to incur other expenditures essential for development. The total power subsidy in 2021 amounts to almost 1.9% of GSDP,” says the report. There are at least 14.5 lakh agriculture tubewells that draw benefit of this scheme. The Amarinder government had proposed to generate bills for tubewell use and offered direct cash benefit to farmers. However, the plan was junked after political opposition.

“Secondly, the policy has very damaging environmental consequences because it promotes water intensive paddy cultivation, leading to an excessive use of groundwater,” it added. “And lastly, only big farmers were really benefitting from the scheme,” the report said.

Darshan Pal of Kranti Kari Kisan Union termed the report as anti-farmer and anti-punjab. “The present government is looking for excuses to end free power to agriculture sector but we will not let it happen,” said Akali Dal spokesperson Daljit Singh Cheema.