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Energy Bonus to cover entire farm sector

Staff Correspondent

Free power will be available to all farmers who clear their bills as on August 31, 2005


  • Size of land holding no basis to avail the scheme
  • State power board to be compensated from Budget
  • Rs. 439 crores additional burden on State exchequer

    CHANDIGARH: Punjab has decided to increase the scope of its "Energy Bonus'' scheme by amending its provisions to provide free power to the entire farm sector, irrespective of land holdings or the capacity of the motors used to run the tubewells. The new-look format resembles the "Energy Voucher'' system followed in some European countries and the U.S.

    This was announced on Tuesday by the Chief Minister, Amarinder Singh, who cited discussions with his ministerial colleagues, legislators and experts, which necessitated the changes. He also explained the problems in implementing the previous edition of the scheme on account of ownership issues related to land and size of the tubewells in different areas.

    Talking to reporters here, Capt. Singh said that while the scheme would be in effect retrospectively from September 1 onward, the facility of free power would be available to farmers who had cleared their bills accrued for usage till August 31.

    While apparently the revised form of the scheme was identical to the one introduced by the preceding Akali-BJP regime, Capt Singh explained the difference by claiming that under the revised proposal, the Punjab State Electricity Board (PSEB) would not be burdened. Unlike the previous government's practice, he said that necessary arrangements had been made to compensate the Board from the state's budget.

    Responding to question, Capt Singh said that while the government had been providing about Rs 1100 crores to the PSEB for subsidised electricity to the farm sector, the "Energy Bonus'' would mean another Rs 439 crores burden, instead of the initial projection of Rs 250 crores, when the scope was limited to land holding of five acres.

    Capt Singh explained that while the supply would continue to be metered to check pilferage, the bills supplied to the farmers would not seek payment for any financial liability. He said that unlike the previous proposals, the state Mandi Board would not be required to make an annual contribution of Rs 100 crores fund the Bonus.

    When reminded that the Prime Minister had expressed his opposition to such doles, Capt Singh said that he had discussed the matter with Dr. Manmohan Singh and appraised him of the necessity to fulfil the promises made in the party manifesto for the 2002 Assembly polls.

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