Cash-Rich Haryana has earmarked Rs 2,800 crore for power subsidy to farm sector for the year 2008-09, surpassing even Andhra Pradesh, which has earmarked Rs 2,385 crore for free power supply to the farmers in its 2008-09 Budget presented this month. From Rs 400 crore six years back, it is a seven-fold leap for Haryana which is paying an average of Rs 40,000 per tubewell for the nearly 4.3 lakh tubewells in the state.
Though Haryana, unlike neighbouring Punjab, does not dole out power free to the farm sector, but subsidises it at 25 paisa per unit. As a result, the farmer pays less than Rs 4,000 per tubewell to the power utilities and nearly 10 times the amount (Rs 40,000) is borne by the state Government.
An estimated Rs 300 crore out of the Budget outlay of Rs 2,800 crore for power subsidy is due to the hike in the cost of generation and transmission of power, official sources in Dakshin Haryana Bijli Vitran Nigam (DHBVN) said.
"The estimate for power subsidy for 2008-09 is Rs 2,800 crore, against Rs 2,132 crore last year.
Though we are able to afford it, subsidies cannot go on endlessly," said Haryana Finance Minister Birender Singh.
"We are mulling over ways to reduce power subsidy burden. At a recent Cabinet meeting, we discussed the proposal of providing power subsidy directly to farmers instead of the power utilities, on the lines of Union Finance Minister's view on providing direct fertiliser subsidy to farmers. It will also help us adjudge the magnitude of transmission and distribution losses which are passed on as power subsidy by the power utilities of the state," he added.
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