Good News: Now Farmers will get Electricity Subsidy Directly in their Accounts

The Madhya Pradesh government has taken an important decision regarding the electricity subsidy provided to farmers.

Now, the subsidy of electricity will be directly deposited to farmers’ accounts instead of power companies. It means now farmers will get Direct Benefit Transfer (DBT). The government has started this scheme in Vidisha district in December 2020.  

By implementing this scheme, Madhya Pradesh government has successfully implemented one out of three reforms prescribed for power Sector.  

Implementation of electricity subsidy in Entire State 

This scheme has been implemented in Vidisha in December 2020. DBT of Rs. 32,07,00,00 was sent to the accounts of 60,081 beneficiaries. After Vidisha, now the preparation to implement this in Jhabua and Seoni districts is going on. After the implementation in three districts, it will be implemented in the entire state in 2021-22 based on the experience gained from it.  

Just a Step for too Many Improvements 

State Energy Minister Pradyuman Singh Tomar said that with the successful implementation of power reform, Madhya Pradesh has got the entitlement to raise additional financial capital equal to 0.15 percent of its gross state domestic product. And, now the state has got the permission to take a loan of Rs. 1423 Crore from the open market. The Energy Minister claims that now farmers will not only get the amount of electricity subsidy without any hindrance, we will be able to prevent the corruption too.  

Along with all this, it is an attempt to improve the balance sheet of power distribution companies through these steps. And with this, their cash problem will also end gradually.