VIJAYAWADA: The Andhra Pradesh Cabinet, which met on Thursday, approved the Direct Benefit Transfer (DBT) of free power subsidy for agricultural connections and resolved to implement it on a pilot basis in Srikakulam district before expanding it to the rest of the state from April 1, 2021.
Chief Minister YS Jagan Mohan Reddy promised free power for agriculture would continue to be provided and no connections would be removed. Further, around 1 lakh unauthorised farm power connections will be regularised. The cost of setting up meters for agriculture power connections will be borne by the government.
For operational efficiency, a separate escrow account will be opened in the name of the consumer (farmer), where free power subsidy in the form of DBT will be credited. As per FRBM rules, the state has to bring in reforms in the free power scheme to the farm sector.
According to an official release, the Chief Minister explained during the Cabinet meeting that with new reforms in the power sector with regard to agricultural connections, one will know to what extent free power is being used and how much is being spent for it. “Farmers will pay to discoms the amount credited to their account, which will give them the right to question the discoms if there is no proper power supply. It will ensure accountability, transparency and responsibility. It will also help discoms stabilise financially,” he said.
He clarified that it would not put an additional burden on farmers, but improve the free power scheme. He said the amount credited to escrow accounts of farmers would be paid to discoms and ensure power subsidy dues are not kept pending like under the previous government. It will also ensure that the scheme does not become unviable, he said. Jagan said credit for free power goes to former CM YS Rajasekhara Reddy and hence the scheme was named ‘YSR Free Power scheme’.
“Though ridiculed by the Opposition led by N Chandrababu Naidu, who was responsible for the infamous Basheerbagh Firing incident to oppress a farmers’ movement, that said giving free power is not possible, and if implemented, power cables could only used as clothes lines, my father YS Rajasekhara Reddy introduced the free power scheme and waived the power dues of farmers. It was the first file he signed after becoming chief minister,” he said.
Stating that subsequent governments watered down the scheme, Jagan said when his government came to power, the existing infrastructure was not conducive to implement nine hours of free power during the daytime in 40 per cent feeders. “We allocated `1,700 crore to upgrade the infrastructure and ensure all feeders are ready for providing nine hours of power during the daytime. As of today 89 per cent of feeders are ready and the rest will be ready by the ensuing Rabi season,” he said.
The CM said the previous regime led by Naidu had kept `8,000 crore free power dues pending to discoms by March 31, 2019 and they were cleared by the present government. Further measures were taken to provide quality power to farmers, he said. At present the government is spending `8,000 crore for free power, that is `49,600 per head.
According to him, officials were instructed not to disconnect power to farmers and set up a call centre headed by the energy secretary to act upon farmers’ complaints. “We have promised nine-hour free power during the daytime and are implementing it. The new reforms will not pose any problems to tenant farmers. Accounts will be opened in the names of those who have power connections. Further, banks cannot adjust the amount credited to those accounts for any other dues. Committees will be formed at the village, mandal and district level for effective implementation,” he said.