Himachal govt plans to end power subsidy for wealthy and taxpayers, will save Rs 800 crore annually
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In a significant move aimed at curbing financial strain, the Himachal Pradesh government has sought proposals from the electricity board management to discontinue the power subsidy for income tax payers in the state.
The board has been instructed to prepare a comprehensive plan to implement this scheme starting in September. The decision, which was discussed in detail during a meeting chaired by Chief Minister Sukhvinder Singh Sukhu at the Secretariat, will end the provision of 125 units of free electricity and associated subsidies for wealthier consumers.
As part of the initiative, the government is in the process of linking consumers’ electricity meter numbers with their ration cards and Aadhaar numbers to streamline the identification process.
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The state government has already decided to provide subsidised electricity only on the basis of “one family-one meter”, effectively removing domestic consumers who are income tax payers from the 125 units free electricity scheme. Furthermore, households with multiple electricity connections will receive subsidies on only one meter, with all additional connections being charged at higher, unsubsidised rates.
The subsidy cuts will extend across a broad spectrum of the state’s influential and affluent residents, including the Chief Minister, former Chief Ministers, legislative leaders, ministers, MPs, MLAs, board chairpersons, advisers, high-ranking IAS, IPS and HAS officers, as well as first and second-class state employees, contractors, and judicial officers.
This strategic move is expected to result in significant savings for the state government, with an estimated Rs 800 crore saved annually. Currently, the state government provides a subsidy of Rs 1,200 crore each year to the electricity board management to supply cheap electricity to consumers, in addition to Rs 100 crore spent on offering 125 units of free electricity per month to domestic consumers.
With more than 22 lakh domestic consumers in Himachal Pradesh, this decision marks a substantial shift in the government’s approach to managing electricity subsidies and fiscal resources.
