Maharashtra to reconsider free power to farmers

Mounting expenses have forced the state government to reconsider its policy of providing free electricity to farmers.

For the financial year 2004-05, the cost of free electricity to the farmers in Maharashtra is likely to be around Rs 1,400 crore , said the state energy minister Dilip Valse Patil.

He was attending a meeting organised by the Reliance Energy in the city.

Patil pointed out that the cost of subsidy doled out by the government in the first quarter of the previous fiscal year worked out to Rs 200 crore. In that quarter, the government bore 50 per cent of the subsidy.

But subsequently the entire supply became free. This means every quarter the state exchequer will have to bear the subsidy burden of Rs 400 crore.

Besides, there has also been an increase in load shedding that today stands at 3000 MW, substantially higher from 1200-1500 MW in July 2004.

"There is an increase in electricity consumption and the water level has been decreasing. We will reconsider the policy of providing free electricity for farmers," the minister said.

Patil indicated that the state government has time till June 10, 2005, for restructuring the Maharashtra State Electricity Board (MSEB).

The minister stated that the MSEB has to form a state transmission unit and form another four companies.

This is to conform to the Electricity Act that outlines the unbundling of the state electricity board.

Meanwhile, the Reliance Energy has launched its power bill in Braille and a project named Prarambh "" designed to promote Braille literacy.

The service for the Braille bill will be available free of cost for its customers in Mumbai city.

The project is targeted to reach out to the estimated 35,000 visually impaired citizens of the city.