Mukhyamantri Solar Pump Yojana got approval

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Govt to provide subsidy to the tune of Rs 7900 crore to consumers in electricity tariff in 2016-17
Cabinet decisions
Bhopal :Electricity will be provided to farmers in the areas sans facility for permanent electricity pump connections or lacking electricity infrastructure in the new Mukhyamantri Solar Pump Yojana.State Cabinet today approved the scheme. The Cabinet also sanctioned subsidy on the tariff announced by MP Electricity Regulatory Commission for the year 2016-17 to electricity consumers. The State government will provide Rs 7900 crore to power distribution companies following the decision. It will provide benefit to farmer, who will get Rs 7600 crore subsidy in electricity tariff.

The Cabinet decided that electricity will be provided for agriculture purpose in the areas lacking electricity infrastructure. Priority will be given to groups and clusters in the scheme implementation.  Non-electrified villages, habitats and forest areas, where there is remote possibility to provide electricity in next two-three years, will get benefit from the scheme. There should be 300 meter distance between the place and electricity lines to get benefit under the scheme. And, the locations near water storages like dam, river where pumping is required for crops (like Kela area in Burhanpur district) and where power consumption is  more than 1500 units per HP – set by the regulatory commission – will get benefit under the scheme. There is also a proposal to implement the scheme in the districts having considerable more commercial loss for power distribution companies. Besides, priority will be given to the areas where transformers were removed by the distribution companies because of commercial loss.

The Cabinet has decided to provide pumps to farmers at 80 percent grant to promote solar pumping. Beneficiaries have to only contribute 20 percent of pump cost. Only DC pumps will be used for 3 HP capacity in the scheme and AC and DC pumps both will be used for the higher capacity. State grant and Centre contribution will be provided on the pumps with capacity of more than five HP. AC and DC pumps with same capacity will be given at the same rate. Farmers in groups as well as individual can take benefit of the scheme. Maintenance for five years will include with guarantee. Energy Development Department will execute the scheme in coordination with agriculture department.

Subsidy to farmers in electricity tariff

The Cabinet decided to sanction subsidy on electricity tariff of financial year 2016-17. Per unit 90 paisa subsidy will be provided to electricity consumers having consumption till 30 units per month on domestic connection. Farmers will pay only Rs 1400 per year per HP for permanent connection for agriculture. The remaining bill will be paid by the state government.

Free electricity will be provided to farmers of scheduled caste and scheduled tribe, who are having one hectare land, on connection of five HP. State government will reimburse the bill to the power distribution company.

Farmers who are having temporary connection will get subsidy of 75 paisa per unit on agriculture connection. The government will bear fixed monthly charges and fuel cost adjustment on temporary and permanent connections both. Subsidy of Rs 95 per Kv per month will be given on fixed charges in low-tension street electricity scheme to municipalities and Nagar Panchayats. Subsidy of Rs 1.90 per unit will be given to consumers of high tension lift irrigation schemes in energy charges. No electricity charge will be recovered on single-point power connection of scheduled tribe and scheduled caste BPL families. Powerloom consumers will get subsidy of Rs 1.25 per unit in energy charges till 25 HP. The Government will provide Rs 7900 crore to power distribution companies for relief to consumers in electricity tariff announced by Electricity Regulatory Commission. Farmers will get subsidy benefits to the tune of Rs 7600 crore.