The Hindu : Plan to give farmers power subsidy in cash

Online edition of India's National Newspaper
Wednesday, Dec 10, 2003

Southern States

Southern States - Karnataka

Plan to give farmers power subsidy in cash

By Our Staff Reporter

Bangalore Dec. 9. The State Government plans to give farmers direct subsidy in cash for power consumed by their irrigation pump-sets, but will do so only after metering all irrigation pump-sets, the Urban Development Minister, D.K. Shivakumar, has said.

Mr. Shivakumar was speaking to reporters after a function to lay the foundation stone for a 66/11 kV sub-station at Kodihalli, beyond Kanakapura, today. To Mr. Shivakumar's statement, the Minister of State for Energy, Basavaraj Patil Humnabad, added that the Chief Minister, S.M. Krishna, had indicated this move in his budget speech.

The State has 14 lakh legal and two lakh unauthorised pump-sets, and the subsidy this year amounts to Rs. 3,000 crore, or between Rs. 12,000 and Rs. 17,000 per 5 hp. But neither Minister specified when the metering process would be completed.

Farmers have in the past resisted attempts by Karnataka Power Transmission Corporation Ltd. (KPTCL) to meter irrigation pump-sets. Right now, they pay around 40 paise for a unit of power they consume though the electricity costs KPTCL at least Rs. 3.25 to Rs. 3.80 a unit. This in turn leads to the high subsidy bill.

Referring to the power situation in Kodihalli, Mr. Humnabad said that people there often complained of very low voltage. The new sub-station would remedy this and benefit 70 nearby villages, he said.

Both Mr. Humnabad and Mr. Shivakumar spoke about Mr. Krishna's recent directive to KPTCL to supply farmers six hours of three-phase power during the day instead of at night. This would be given effect to by Wednesday, they said.

Mr. Humnabad, who spoke about the Government's pro-farmer attitude, also touched upon recent moves to reform the power sector. As part of this, a strict Anti-Theft Law, with jail terms for power thieves, had come into effect but the Government was not anti-farmer, he stressed. Though the State had two lakh illegal irrigation pump-sets, Mr. Humnabad said farmers stole power only when they had no other option.

"The Government knows that for the past four years the rains have failed. That is why we have closed our eyes to the theft of power by farmers. The Chief Minister has even directed KPTCL not to fine farmers but to concentrate on industries that steal power," he added.

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