E-Paper
Subsidy: Haryana farmers to pay 10 paise per unit for power costing ₹6.67 per unit
The highly-subsidised electricity supplied to Haryana’s farm sector to run agriculture tubewells will cost the state government ₹6
The highly-subsidised electricity supplied to Haryana’s farm sector to run agriculture tubewells will cost the state government ₹6.67 per unit in 2022-23 financial year. The ‘pampered’ farm sector, however, will continue to get power at the subsidised tariff of 10 paise per unit (metered supply).
The state government will be required to pitch in with a subsidy of ₹6,050 crore to keep the tariff at the current level as per orders of the Haryana Electricity Regulatory Commission (HERC). This rural electrification subsidy is considered a burden on the public exchequer.
The power tariff approved by the HERC for 2022-23 said agriculture tubewell supply tariff will be ₹6.67 per unit for the metered supply.
However, the state government may continue with the subsidised tariff and provide advance subsidy in the beginning of each quarter to two power distribution companies – Uttar Haryana Bijli Vitran Nigam (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam (DHBVN). The distribution companies (DISCOMS) hope to earn about ₹110 crore revenue from sale of power as per subsidised tariff for the farm sector.
The DISCOMS in the applications before the regulator submitted that the state government has promoted multiple schemes for crop diversification due to which there will be growth in usage of electricity in the agriculture sector despite mandatory use of energy efficient pump-sets for release of new connections.
The regulator, in its 2022-23 tariff order, approved the sale of 9,236 million units of power for agriculture tubewells by the two distribution companies with DHBVN projecting sales of about 5,395 million units and UHBVN aiming to sell about 3,841 million units.
Presenting the 2022-23 budget estimates in the assembly, chief minister Maohar Lal Khattar had announced that the committed budgetary support to power utilities is being given in the form of equity and rural electrification (RE) subsidy. Budgetary support of ₹6,758.83 crore, including ₹5,983 crore for RE subsidy, was provided to the power sector in the 2022-23 budget estimates.
The regulator had earlier approved about ₹6,450 crore towards agriculture tubewell subsidy for 2020-21 financial year. This was determined based on an estimated cost of service of ₹7.33 per unit for agriculture tubewell power supply of 9,217 million units.
However, based on the true-up of expenses for the 2020-21and revised approval of agriculture tubewell power sale, the commission had observed that the revised subsidy worked out to be ₹5,739 crore.
