Premium
This is an archive article published on November 16, 2004

Deshmukh govt may switch off free power

A month after winning the Assembly elections, the Democratic Front government is doing a rethink on its decision to grant free power to farm...

.

A month after winning the Assembly elections, the Democratic Front government is doing a rethink on its decision to grant free power to farmers in the state.

‘‘The government cannot afford to bear the burden of providing free power to 23 lakh agricultural connections in the state. Sooner or later, we will have to reconsider the decision,’’ a highly-placed source said on Monday.

On the eve of the Assembly elections, the government had announced the sop for farmers to tide over the anti-incumbency factor in Maharashtra. The combine said the rural sector needed a helping hand, as the unprecedented drought in several parts had affected peasants badly.

Story continues below this ad

However, now that the DF is back in the saddle, and given the good monsoon, the ruling combine is assessing the viability of the decision.

The sop will cost the exchequer Rs 1,500 crore every year as the Maharashtra Electricity Regulatory Commission has asked the government to bear the burden of free power, instead of milking the Maharashtra State Electricity Board. The government has already paid Rs 326 crore towards bill payments and the second installment of a similar amount is due next month.

‘‘The issue will be discussed by the State Cabinet in its meeting this week,’’ the official said.

He said the government has two options — either to scrap the decision or to keep the free power facility limited to small and marginal farmers.

Story continues below this ad

‘‘The Cabinet will decide what step should be taken,’’ the official said, adding that the Central government was not ready to help the state on this front.

Significantly, the Minister of State for PMO, Prithviraj Chavan, on Monday categorically said the state government should not expect any help from the Centre on the freebies being offered to farmers.

‘‘If the state government wants to grant free power to farmers, it’s fine. They should not look at the Centre to shoulder the burden,’’ he told reporters in South Mumbai. However, he added that a few farmers were in distress after facing drought for three consecutive years and hence they would need some assistance.

On the other hand, Union Agriculture Minister and NCP chief Sharad Pawar has also cautioned the government against continuing the sop. In fact, Pawar has been speaking against the decision right from day one, insisting that the sop should be kept limited to poor sections among the peasants.

Story continues below this ad

‘‘Populist measures have to be implemented by keeping in mind the interest of the nation,’’ Pawar said today after attending a function in North-West Mumbai. He reiterated his stand that rich farmers need not be given freebies.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement