It146;s Shinde146;s turn to switch off reforms with free power

When the proposal is implemented, Maharashtra State Electricity Board will face an additional burden of Rs 5,200 crore8212; Rs 2,200 crore for writing off power bills and Rs 3,000 crore for the loan interest waiver.

Maharashtra is the second Congress-ruled state after Andhra Pradesh to announce such a populist measure. Currently, the state8217;s energy bill for 24 lakh agriculture pumps 8212; the primary source of power consumption in the farming community 8212; amounts to Rs 2,200 crore.

Of this, Rs 800 crore is written off as subsidies. Since Shinde8217;s announcement was made in the presence of the newly appointed AICC general secretary for Maharashtra, Margaret Alva, it is being considered as approved by UPA chairperson Sonia Gandhi.

A Central team was in the state for a first-hand assessment of the drought-hit areas. Team members held a late evening meeting with the Chief Minister yesterday.

But energy experts described the CM8217;s decision as 8216;8216;illegal8217;8217; and detrimental to the state8217;s economy. 8216;8216;This would go even against the Electricity Act, 2003 which forbids free power. It would also affect quality of power distributed in the rural areas. It will weaken the distribution network,8217;8217; said former MSEB chief and energy expert Ashoke Basak. He saw another problem: farmers would use pumps indiscriminately to 8216;8216;overdraw water from all possible sources,8217;8217; creating a scarcity and a drop in water tables.

Speaking at the Congress state headquarters in central Mumbai, Shinde, however, was clear: 8216;8216;The drought has burdened farmers. We have to seriously think of waiving off interest on loans and giving our farmer-brothers free electricity. The government is looking into the matter,8217;8217; he said, to loud applause from partymen.

Shinde8217;s announcement comes close on the heels of a similar plan announced by Shiv Sena chief Bal Thackeray at Aurangabad on July 11. Thackeray had said his party, if voted to power, would write off all power bills for farmers. Following up on its announcement, Sena executive president Uddhav Thackeray is, in fact, touring drought-hit areas in a pre-poll campaign which focuses on sops lined up by his party for farmers. Faced with the anti-incumbency factor and uneasy about the overwhelming response from the rural areas to the Sena8217;s strategy, Shinde was expected to make a similar announcement. His coalition ally, the NCP, is also in favour of free power and loan interest waiver for farmers.