Haryana power utilities to urge rich farmers to give up subsidy

CHANDIGARH: Taking a cue from Centre's ' Give it up LPG subsidy', the power distribution utilities-Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam-are exploring possibility to launch voluntary scheme for farmers who annually earn more than Rs 20 lakh to give up agriculture subsidy on electricity. The initiative is part of directives issued to the utilities by the Haryana Electricity Regulatory Commission to bring down subsidy on electricity that is likely to surpass Rs 6700 crore in the coming financial year.

The distribution utilities are looking to launch a mobile application to exhort well-to-do farmers to voluntarily give up subsidy on electricity. "The field level officials have been directed to begin spadework to explore different options to encourage farmers with deep pockets to give up the subsidy," a senior official of Haryana Power department said. The utilities are exploring possibility of developing a mobile application on the pattern of Centre's Jan Dhan Aadhar Yojna campaign of 'Give it up LPG subsidy'.

The initiative is part of directives issued by Haryana Electricity Regulatory Commission to the utilities to rationalize agriculture power subsidy. "The average power cost has surpassed Rs one lakh per tube well in the state. The highly subsidized supply is prone to misuse of electricity and water as well," says director tariff Haryana Electricity Regulatory Commission Sanjay Varma.

Presently, farmers in Haryana pay a flat rate of paise 12 per unit for electricity consumption in tube wells for irrigation. The consumption of subsidized power in agriculture sector is more than other major category including industry or domestic consumers.

The regulator has directed the utilities to urge farmers to give up subsidized power to farmers whose annual income is more than Rs 20 lakh. The utilities have suggested the utilities to mention the request on the electricity bills of agriculture consumers.

The total agricultural sales approved by the regulator for FY 2015-16 were 8570.73 million units against subsidy of Rs. 6196.91 Crore for UHBVN and DHBVN. The true up of agriculture subsidy was recorded at Rs 6438.7 crore for the two utilites in FY 2015-16.

" The subsidy is expected to surpass Rs 6700 crore in 2017-18," an official of the commission said.
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