Jharkhand: Hemant cabinet withdraws subsidy on power tariff

In a major blow to the middle class, the on Thursday decided to withdraw the subsidy offered on grid power to various categories of power consumers who use 400 plus units ofelectricityper month. The decision was taken by the cabinet during its meeting on Thursday in which 35 proposals were approved. However, the new subsidy till 400 units was not specified.

Until now, the energy department offered different slabs of subsidy to urban domestic consumers which was approved by the Jharkhand State Electricity Regulatory Commission (JSERC). At present, the tariff order of 2019-20 is in force and the rate has been fixed at Rs 5.50 per unit (for urban domestic consumers). The department has been offering a subsidy of Rs 3.25 for 200 units per month, Rs 1.50 per unit for consumers who used 201-500 units per month and a subsidy of Rs 1.25 per unit to consumers using between 501 to 800 units.

Moreover, 50 paisa subsidy was given to consumers using more than 800 units per month. With this decision, the department targets to save around Rs 210 crore annually. The decision assumes significance in the wake of a new solar power policy approved by the council of ministers aimed at promoting solar power in the state. Under the new policy, the state targets to instal 4,000MW solar power Plants in the next five years and various subsidies and incentives have been offered to the consumers.

Moreover, the government has promised to give free land and offered 100% exemption on stamp duty for the upcoming solar park. At the individual level, rooftop grid-connected solar power plants will be provided different subsidies up to 80%.

The cabinet also approved a proposal for two bills to be tabled during the budget session beginning Friday. The ministers agreed to adopt the central bill on the Marketing of Agriculture-notes-for-state-psc-exams”>Agriculture produces with slight amendments and accordingly, theJharkhand State Agriculture Produceand Livestock Marketing Promotion and Facilitation Bill-2022 would be tabled.

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