‘Free power to farmers an eyewash, will only benefit MSEDCL’

MUMBAI: Power experts and consumer organisations have termed as an ‘eyewash’ the Mahayuti government’s Mukhyamantri Baliraja Vij Savlat Yojana (MBVSY), under which it has promised farmers free power for agricultural pumps of up to 7.5 horsepower for up to five years. They say that since almost 98% of farmers have not been paying bills and have thus been using free electricity for agricultural pumps for years, the scheme will only help state-controlled power companies to strengthen their balance sheets.

As per the proposal of the energy department approved by the state cabinet on March 31, 2024, Maharashtra has 47.41 lakh agricultural pump consumers with electricity bill arrears of ₹65,565 crore. Of these, 44,03,549 have pumps with a capacity of up to 7.5 horsepower, and their dues amount to ₹56,166 crore.

“Of the last financial year’s bill of ₹7,775 crore issued to farmers using pumps up to 7.5 horsepower, only ₹185 crore was recovered in 2023-24, which is a recovery of a mere 2.38%. The state has also given a subsidy of ₹6,985 crore in the last fiscal for concessional rates of electricity to farmers,” states the proposal. “Under the MBVSY, the state government will bear the burden of the current subsidy of ₹6,985 crore and the concession given to farmers of ₹7,775 crore. The state government will pay MSEDCL ₹14.760 crore per year as the electricity bill of agricultural pumps for implementing the scheme.” Though the scheme has been announced for five years, the order says it will be reviewed after three years.

Pratap Hogade, chairman of the State Power Consumers Association, said that free power to consumers was nothing but a political gimmick and an eyewash ahead of the assembly elections, as almost 98% farmers were already using free power for agricultural pumps by not paying electricity bills for years. “There will be no change in the situation on the ground for farmers, as 98% of the bills were going into the arrears column of MSEDCL, and farmers were already using free electricity for agricultural pumps,” he said. “For political reasons, the state government was not allowing MSEDCL to cut the power connection to the pumps. So, its claim of giving free power to farmers for agricultural pumps is hogwash.” Hogade added that this scheme would benefit MSEDCL more than farmers, as it would help it strengthen its balance sheet.

Ashok Pendse, another power expert, said that till now MSEDCL had been facing financial heat due to the electricity bill arrears from farmers. “Now the state government will give that money to MSEDCL, making the latter the real beneficiary of the scheme,” he said. Pendse also raised another question. “From this year, the government will give over ₹14,000 crores to MSEDCL but what about the pending dues of Rs.56,000 crores from farmers?” he asked.

Vishwas Pathak, director of the MSEB Holding Company Ltd, claimed that the benefit of the free power scheme lay in the mental relief it would give farmers. “The Mahayuti government has consistently made efforts to give relief to farmers,” he said. “Although most farmers are not paying electricity bills, the fact that they have to is a Damocles sword hanging above their heads. Now through this scheme, the Mahayuti government has done away with this sword. Besides this, farmers will soon get daytime power instead of rotational power, which will be a big relief for them.”