UP farmers to get Rs 900 crore subsidy on power use

LUCKNOW: The state government has decided to roll out subsidy of Rs 900 crore on power consumption by private agricultural tubewells. This will help raise the income of farmers hit by the Coronavirus pandemic.
The agricultural department has released a tranche of Rs 100 crore to the Uttar Pradesh Power Corporation Limited for the month of July. Subsidy for the subsequent months would follow soon, sources said.
In a letter sent on September 4, the department asked the directorate of agriculture to release the grant at the earliest.
The energy department will have to furnish a utilization certificate for the funds released.
Last year, Uttar Pradesh Electricity Regulatory Commission had increased fixed charges of rural unmetered private tubewells and pump sets from Rs 150/BHP (brake horse power) per month to Rs 170/ BHP, while in case of metered ones the energy charges have been sought to be increased from Rs 1.75 per unit to Rs 2.25 per unit and fixed charge from Rs 60/BHP to Rs 90/BHP. There has not been any hike in power tariff of tubewells since then.
The directive is significant in the wake of upcoming rabi crop season, essentially wheat, which will be grown across the state. According to experts, the farm economy had taken a serious hit after the lockdown halted transportation which, in turn, stagnated the harvest of kharif crops. Further during the peak harvest, the produce could not reach mandis, thus disrupting the supply chain. The pandemic had given rise to several challenges in procurement operations as well.
Further, the state government has directed that the funds would be withdrawn from the state exchequer as per the requirements. It will also be ensured that the funds are not allocated from any other scheme or programme. Also, the funds would not be utilized in any other scheme.
At the same time, the government said the department would be required to follow a standard of financial propriety. As per the guidelines, the agriculture department would be required to get the financial sanction verified by a designated authority. The department would also have to reveal the names of beneficiaries by posting their details on a designated website.