State cabinet headed by chief ministerShivraj Singh Chouhan approved subsidy in tariff fixed by theMadhya PradeshElectricity Regulatory Commission forfarmersand 98 lakh domestic consumers. Chief minister Shivraj Singh Chouhan also asked theMSMEdepartment to frame a policy to encourage rice mills and ethanol production in the state.
The Home minister said that subsidy for farmers with 10 h p pumps is close to Rs One lakh per year which is paid by the state while the farmer needs to pay a very nominal sum. Added to this there are 98 lakh domestic consumers who get electricity at Rs 100 per month. The power subsidy burden on the state treasury is Rs 21,000 crores.