BOMBAY, 11 May 2005 — Driven out by the acute power crisis in the state, the Maharashtra government yesterday took the decision to scrap free power to the farmers effective from June 1, 2005. State Chief Minister Vilasrao Deshmukh announced this decision after the weekly Cabinet meeting.
Deshmukh however said that the government would provide subsidy to the farmers for the electricity. The government would disperse 120 million rupees annually to the Maharashtra State Electricity Board (MSEB) as grant to provide electricity at subsidized rates to the farmers. Explaining the reasons for scrapping the policy of free electricity, Deshmukh said that in the prevailing critical power situation in the state which has forced the government to introduce heavy load shedding throughout the state except for Bombay, there was no other option but to withdraw the policy. The government, he said would be saving 50 million rupees as a result of ending the free electricity to farmers.
