JAIPUR: A crisis is looming over Rajasthan's free electricity scheme of up to 100 units. According to sources, the state government is planning to end the scheme in the Budget for 2025-26. Recently, Union Minister Prahlad Joshi had hinted at this possibility.
In a meeting held in Jaipur, Joshi remarked that free electricity is being provided in some states for political reasons, which he deemed unfair. He further asserted that long-term free electricity schemes increase the financial burden on the state. Significantly, Chief Minister Bhajanlal Sharma was also present at the event.
Currently, over one crore consumers are benefiting from free electricity up to 100 units. However, the government is exploring alternative solutions to mitigate the impact on consumers.
Instead of the free electricity scheme, the state government may introduce an additional subsidy for rooftop solar installations, similar to initiatives in Uttar Pradesh and Haryana. Under the PM Surya Ghar Yojana, subsidies are provided to those installing rooftop solar panels. The Rajasthan government is considering offering 300 units of free electricity to consumers who install solar panels on their roofs, along with a one-time subsidy of up to Rs 40,000.
However, discontinuing the free electricity scheme could provoke widespread public discontent. Consequently, discussions on this issue are taking place at the highest levels of government. The final decision will be taken by Chief Minister Bhajanlal Sharma, and once approved, the announcement of ending the subsidy may be made in the upcoming budget. To ease the transition, an additional subsidy may be introduced to encourage consumers to install solar panels.
According to departmental sources, this model, inspired by Haryana and Uttar Pradesh, could replace the current free electricity scheme. Under the PM Surya Ghar Yojana, the central government provides subsidies for rooftop solar panel installations. The Rajasthan government is considering offering an additional subsidy of 12 to 20 per cent from its own funds.
Union Minister Prahlad Joshi had hinted at this shift in January, and its impact may be reflected in the upcoming budget announcements. He previously stated, "Instead of providing free electricity, we should empower consumers so that they can not only use affordable electricity at home but also contribute to the nation's energy needs by supplying surplus electricity to the grid."
Recently, Chief Minister Bhajanlal Sharma echoed similar sentiments, stating, "The PM Surya Ghar Yojana is set to become a boon for the entire country. Under this scheme, rooftop solar plants are being installed in millions of homes, enabling people to generate their own electricity. Such families will be able to use free electricity and also earn money by supplying excess power to the grid. Work is currently underway to install rooftop solar plants on five lakh houses in Rajasthan, and we aim to set an example by achieving this target soon."
It is important to note that Rajasthan's power companies were already in a financial deficit of Rs 1.25 lakh crore as of March 2024. The Free Electricity Scheme was introduced by the previous government despite these heavy losses. Several other states had implemented similar schemes before Rajasthan, but the growing financial strain now compels the government to explore alternative solutions.