The Punjab State Farmers’ and Farm Workers’ Commission wants free electricity to big farmers to go and power subsidy rationalised to reduce the unsustainable use of groundwater.
“Power subsidy will be strictly restricted to non-income tax payee farmers,” it has suggested in its draft ‘Punjab State Farmers’ Policy’.
It says that to begin with, a flat rate of Rs 100/hp/per month be charged from farmers owning 4 hectares (9.88 acres of land) or more. “Subsequently, consider rationing the power subsidy to a financial cap.”
Ajay Vir Jakhar, who heads the commission, says that stopping power subsidy to big farmers is one proposal that all farm unions agree to. The revenue generated, he says, can be used for the welfare of small and marginal farmers.
Also, the government has been asked to explore the option of power subsidy via direct benefit transfer. Regarding free power to domestic consumers, the commission has proposed that this be confined to socially and economically backward sections in villages.
The climbing power subsidy bill in the past few years has been a matter of concern for economists. Rapping the Punjab Government, a CAG report two months ago had pointed out that 99 per cent of the state subsidy in the past five years had gone into providing free power.
This financial year, the government will pay Rs 6,256 crore to the PSPCL for free power to farmers.
In a study earlier, Prof Ranjit Singh Ghuman of the Centre for Research in Rural and Industrial Development (CRRID), Chandigarh, had observed that if free electricity to big farmers was withdrawn, the state exchequer could save a huge amount which could be spent on rural education, health, sanitation and physical infrastructure.
The free power facility to the farm sector was started by then Congress government in 1997. Initially, farmers with land up to 7 acres were entitled to it. But a month later, the facility was extended to all tubewells. Since then, successive governments have continued with it.
Punjab CM Capt Amarinder Singh has already made an appeal to well-off farmers to forego the facility.
