Cabinet approves govt's free electricity scheme

Time of India

18-07-2025

Patna: The state cabinet at its specially convened sitting, chaired by CM Nitish Kumar, on Friday approved the govt's proposal to provide 125 units of free electricity to 1.67 crore domestic power consumers, which is 90% of the total consumers.
Even the consumers who use more than 125 units of power will get relief, as usual tariff rate adjusted with the existing power subsidy will be applicable on the excess power used.
In another major decision, the cabinet okayed a proposal to promote the use of solar energy by all domestic consumers. For this, the govt has earmarked a hefty sum shared by both the Centre and state under 60:40 ratio, which would be spent on the installation of solar energy equipment and panels on rooftops under Kutir Jyoti Yojana to cover domestic consumers belonging to below poverty line (BPL) category, who will get full subsidy.
Overall target is to shift to the use of solar energy in the next three years.
The provision of 125 units of free electricity will become effective from Aug 1. In tune with the same, the 1.67 crore power consumers will not be required to pay the bills for July.
State energy minister Bijendra Prasad Yadav said the govt's stress is on promoting the use of solar energy. The shift on a large scale will help reduce the amount of money being spent on power subsidy, he added.
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The policy to give free electricity will put an additional subsidy burden of Rs 3,797 crore during the current fiscal.
To promote the use of solar energy in the state, the cabinet approved the proposal to spend Rs 60,000 crore under the centrally supported Kutir Jyoti Yojana. Of this sum, the central share is Rs 33,000 crore, while the state's is Rs 27,000 crore, which will be provided for the expansion of the CM Vidyut Upbhokta Sahayata Yojana.
Under the solar energy promotion scheme, the equipment of 1.1 kilo watt capacity, along with solar panels, will be installed free of cost on the rooftops of 58.89 lakh BPL consumers. The rest will get some quantum of financial assistance under PM Surya Yojana and CM electricity consumer assistance scheme.