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This is an archive article published on September 3, 2024

125-unit free power by BJP cost Himachal 1,247 cr in 2 years: CM Sukhu

Sukhu, however, dodged the question of how much money the state government would earn by discontinuing the 125-unit electricity subsidy.

sukhwinder singh sukhu himachal pradeshReplying to a question by Congress MLA Kewal Singh Pathania, Sukhu said, “The state has at least 16 types of electricity subsidies ongoing. So far, we have withdrawn only one subsidy of Rs 1 per unit given to industries in the state. This subsidy was withdrawn on September 1. (Express file photo)

The 125 units of free electricity subsidy scheme for all domestic users in Himachal Pradesh introduced by the previous BJP government cost the state exchequer nearly Rs 1,247.75 crore over the past two and a half years, Chief Minister Sukhvinder Singh Sukhu informed the Assembly Monday.

“If we don’t reform the electricity sector, the state government will have to pay Rs 2,200 crore to the Himachal Pradesh State Electricity Department (HPSED) by the end of this year.” the CM said.

Former chief minister Jai Ram Thakur had on April 1, 2022 implemented the scheme in the state.

The state government has, meanwhile, paid Rs 1,247.75 crore as a rollback subsidy to the HPSEB for providing 125 units of free electricity to domestic consumers in the state since April 2022.

Replying to a question by Congress MLA Kewal Singh Pathania, Sukhu said, “The state has at least 16 types of electricity subsidies ongoing. So far, we have withdrawn only one subsidy of Rs 1 per unit given to industries in the state. This subsidy was withdrawn on September 1.

The decision to implement the ‘One House, One Electricity Meter’ policy, where subsidies are given only to those belonging to the BPL families, was aimed at economic reform in the state.”

Attacking the Opposition for introducing several schemes without considering the state’s economic interests, the CM defended his government’s decisions on the Old Pension Scheme (OPS) and the Rs 1,500 scheme for every woman under the Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojna (IGPBSSNY). “We introduced OPS and the Rs 1,500 scheme for the welfare of retired employees and women in the state with due consideration,” he said.

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Sukhu, however, dodged the question of how much money the state government would earn by discontinuing the 125-unit electricity subsidy. “It is a complicated issue and is under consideration. A decision will be made after considering all aspects,” he said.

The CM said the state government paid Rs 460.53 crore rollback subsidies in 2022-23, Rs 597.21 crore in 2023-24, and Rs190.75 crore till June 2024.

Chief Minister Sukhu informed the House that the government earned Rs 12,160.68 crore in the Goods and Services Tax (GST) and Rs 5,840.35 crore in the State Production Tax from April 1, 2022 to July 31, 2024.

Rs 5,259.20 crore in the GST was earned in the Financial Year 2022-23, Rs 5339.89 crore in 2023-24 and Rs 2011.59 crore till July 2024. Meanwhile, Rs 2,147.07 crore in the State Production Tax was earned in 2022-23, Rs 2,631.30 crore in 2023-24 and Rs 1,062.01 crore till July 2024.

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

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