Farmers get free power

The largesse will cost the state a minimum Rs 1,500 crore per year, which will be paid to Maharashtra State Electricity Board (MSEB) as subsidy for supplying free power.

Until now, the subsidy bill stood at Rs 800 crore. So, the immediate hike in subsidy amounts to Rs 700 crore but the figure may rise as more electricity is expected to be drawn by rural consumers. This, in turn, would also cause more power shortage.

Also, after today’s announcement, the possibility of MSEB recovering dues of Rs 2,200 crore pending with agro-consumers appears remote. If the state decides to waive outstanding bills, the cost of free power will rise to Rs 4,000 crore in the first year itself, said a Finance Department official. ‘‘To make up losses, the government will have no option but to hike taxes and levies,’’ he added. The Finance Department had opposed the proposal, raising concerns about the rising debt burden which stands at Rs 93,000 crore.

The state currently faces a power shortage of 1,500 MW to 2,200 MW which results in three to five hours of power cuts thrice a week all over Maharashtra except Mumbai.

With 24 lakh agriculture pumps expected to draw more electricity as a result of today’s decision, the shortage could go up considerably and load-shedding may increase. The effect may extend to Mumbai.

‘‘Till now, there was some limit on running electric pumps as farmers were paying for using electricity. Henceforth, there will be reckless use since power supply will be free,’’ said an official.

Another problem foreseen is the reckless drawing of water by farmers, especially sugarcane growers. Continuous drawing of water from natural resources like wells would mean further deterioration in ground water levels, said a rural development department official.

Free power supply to farmers would be available with effect from July 1.

On the political front, the move is seen as an effort by the Congress-NCP combine to deprive the Sena-BJP of a major poll plank. It was Bal Thackeray who recently announced that the Shiv Sena would provide free electricity to farmers if elected to power in the coming elections.