Madhya Pradesh to give Rs 8700 crore subsidy on electricity tariff to consumers

The decision was taken at a cabinet meeting chaired by chief minister Shivraj Singh Chouhan.

Published: 21st June 2017 12:52 AM  |   Last Updated: 21st June 2017 12:52 AM   |  A+A-

Image for representational purpose only.

By Express News Service

BHOPAL: The Madhya Pradesh government has decided to give Rs 8700 crore subsidy to consumers on electricity tariff implemented for the 2017-18 fiscal year by the MP Electricity Regulatory Commission.

The decision was taken at a cabinet meeting chaired by chief minister Shivraj Singh Chouhan on Tuesday.

The payment will be made by the state government to the power companies and the benefit will accrue ultimately to agriculture consumers, minister for public relations Narottam Mishra said.

As a result, a subsidy of Rs 1.10 per unit will be given to domestic consumers using 30 units of electricity monthly and 20 paisa per unit to domestic consumers consuming electricity up to 50 units.

An electricity bill of Rs 1400 per horse power per annum will have to be paid as the flat rate by agriculture consumers with permanent connections. The balance payment will be fulfilled by the state government from the subsidy.

Similarly, electricity will be provided free up to 5 hp to agriculture consumers belonging to the Scheduled Castes and Scheduled Tribes holding one hectare of land.

Moreover, a subsidy of Rs 1.70 per unit will be given to agriculture consumers having permanent connections. The complete burden of fixed monthly charges and FCA will be borne by the state government and the subsidy will be continued for agriculture consumers of permanent and temporary connections.


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