The Punjab and Haryana high court has disposed of two public interest litigations (PILs) challenging free or subsidised power to rich farmers in the states of Punjab and Haryana.
The PILs filed in 2017 with respect to Punjab and in 2018 on a somewhat similar policy in Haryana had sought the exclusion of rich and affluent farmers from such subsidy schemes.
“The issue of whether to provide a subsidy for free power/electricity to the tubewells of farmers or to exclude rich farmers from availing such subsidies etc. lies within the exclusive domain of policy decisions of the respective states… This Court, thus refrains from entering into the field of policy making, which falls within the exclusive domain of the Executive,” the bench of chief justice Sheel Nagu and justice Sanjiv Berry observed while disposing of the plea.
The court, however, granted liberty to the petitioner advocate HC Arora to make an appropriate representation to the respective governments, which it said would be considered within 30 days and would be decided in accordance with the law.
Both governments had told the court that rich consumers are being asked to voluntarily give up the subsidy. However, had refrained from taking a policy decision.
With respect to Punjab, petitioner Arora had stated that the government has been providing free electricity for tubewells to farmers for the last several years. Such a subsidy, which is reimbursed to PSPCL (Punjab State Power Transmission Corporation) by the state government, has touched the figure of ₹6,113 crores during 2016-2017. The rich farmers are also availing of this subsidy.
{{/usCountry}}With respect to Punjab, petitioner Arora had stated that the government has been providing free electricity for tubewells to farmers for the last several years. Such a subsidy, which is reimbursed to PSPCL (Punjab State Power Transmission Corporation) by the state government, has touched the figure of ₹6,113 crores during 2016-2017. The rich farmers are also availing of this subsidy.
{{/usCountry}}“...all IAS/IPS officers, MLAs/MPs/Industrialists who have farm lands also, should be excluded from the benefits of this scheme,” the PIL said. The petitioner had also submitted alleged names of prominent politicians in the state availing power subsidy.
He had reasoned that just as some rich and prosperous persons are excluded from the benefit of OBC reservations as “creamy layer”, a similar mechanism should be carved out for rich cultivators.
Reports suggest Punjab’s current power subsidy bill has touched ₹10,000 crore.
With respect to Haryana, Arora’s PIL in 2018 had pointed out that tariff charged for electricity to agricultural pump is at 10 paisa per unit for the metered connections, and at ₹15 per brake horsepower (BHP) for unmetered tubewell connections, whereas from domestic consumers, the tariff is charged as per slab system from ₹2.70 to ₹7.10 per unit in Haryana, which is highly discriminatory.
Here also, he had listed the names of some prominent families in Haryana who were availing the subsidy.
The farm power subsidy bill in Haryana is estimated to be ₹7,000 crore.