Tuesday, May 10 2005 18:46 Hrs (IST) - World Time -

Mumbai: The free power to farmers scheme, which proved a major tool for the Democratic Front (DF) to return to power in Maharashtra, will be discontinued from June 1, less than an year after it was launched with much fan fare.

Informing the decision after the weekly Cabinet meeting today (May 10, 2005), Chief Minister Vilasrao Deshmukh said that the scheme will be discontinued from June 1, but in lieu of it, farmers will be provided electricity at subsidised rates.

"We have not withdrawn the scheme in total. By offering electricity at subsidised rates, we will continue to cater to marginal farmers for whom the free power scheme was meant," Deshmukh said.

Although the State will continue to pay nearly Rs 1200 crore on account of subsidised electricity, the move to stop the scheme has come just two days before Deshmukh is scheduled to meet Prime Minister, Manmohan Singh, seeking intervention to tide over the power crisis in Maharashtra.

Discontinuation of free power scheme was one of the reformatory measures which the Centre had reportedly asked the State to take before the meeting, official sources said.

According to Deshmukh, apart from the excess power that was being drawn because of the scheme, the other reason that prompted discontinuation was the uncontrolled drawing of water by farmers that had adversely affected the ground water level.

According to Energy Minister Dilip Valse Patil, the State used to pay nearly Rs 1,050 crore as subsidies to Maharashtra State Electricity Board (MSEB) before the free power scheme was launched, and Rs 1700 crore after the scheme was launched.

The Energy Minister said that the new agricultural power rates were: Rs 500 per Horse Power for agricultural users having motor pumps below three HP, Rs 700 per HP for motor pumps between three and five HP, and Rs 900 per HP for motor pumps above five HP.

The Chief Minister said that the MSEB has now also made it compulsory for agricultural users to install capacitors and electrical meters before the end of the year. The MSEB will offer special rates ranging between 20 paise to 50 paise per unit to those installing meters, he said.

So far, of nearly 25 lakh agricultural consumers in the State, only five lakh are metered, Patil added.

Earlier, Deshmukh said that the reason behind announcing free power to farmers was the prevailing drought and growing suicides among farmers that time. However, situation has changed since then, and there was a severe shortage of power in State, he said.

"Most of us (members of the Government) are of the opinion now that such freebies should be discontinued," Deshmukh said replying to a question whether discontinuation of free power would mean no more freebies ahead.

The free power to farmers scheme was launched by the then Chief Minister Sushil Kumar Shinde months before the State went to Legislative Assembly polls in October last year. The move was prompted by similar announcement made by Shiv Sena chief Bal Thackeray, who promised free power if the Sena-BJP (Bharatiya Janata Party) combine were to come to power.

The scheme proved a jump board for the Congress-NCP (Nationalist Congress Party) DF combine, although it cost nearly Rs 400 crore per quarter to the State exchequer.