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Free power to farmers at what cost?
2008-08-29 21:35:00
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By Kiran Varma
BANGALORE: Offering free electricity to farmers has become the biggest sop to win elections in India. But, several states have burnt their fingers by resorting to this exercise. The best example is Madhya Pradesh which suffered hugely due to the free power policy in the beginning of the millennium.

Now, Karnataka has become another state which is struggling to keep the promise of free power to farmers.

Recently, Karnataka has assured farmers that they will get free power for their pump sets up to 10 horse power capacity. But, the offer came with a rider — the farmers should pay up the dues amounting to around Rs 3,346 crore.

According to officials, Karnataka farmers owe state-owned electricity supply companies Rs 3,346 crore and the state government wants them to pay up to get free power supply.

Farmers in the state owe Rs 2,682 crore and another Rs 664 crore in interest on it to the six electricity supply companies.

The government is ready to write off the interest on the dues if the farmers paid the principal in eight instalments over a period of two years.

The government has also decided to set several conditions for farmers to get free power supply. Only those farmers who pay the dues will get free power supply. These farmers should also agree to install meters to monitor power consumption.

As a sop to farmers who are opposed to installing the meters, the Cabinet decided that the government would bear the meter installation cost.

Free power supply to farmers with irrigation pump sets of up to 10 horse power capacity was one of the election promises of the Bharatiya Janata Party, which came to power in Karnataka for the first time in May this year.

The Cabinet decided to exclude from the free power supply scheme farmers who pay Income-Tax, professional tax and those employed in the state and Central governments, state-aided institutions, boards and corporations.

Free power scheme will benefit 1.6 million farmers.
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