Rs 5,100 Crore Write-Off: Shivraj Singh Chouhan Waives Power Dues Of 88 Lakh Families

The Madhya Pradesh (MP) government under Shivraj Singh Chouhan has decided to waive off power bills running to Rs 5,100 crore, bringing relief to 88 lakh below poverty line (BPL) families and those covered under the Mukhya Mantri Jan Kalyan Yojana.

The decision was announced by the Chief Minister on Tuesday (5 June) under a project named Saral Bijli Bill Scheme. The scheme will be launched on 13 June to provide power to BPL households at Rs 200 per month. After August, electricity will be supplied at the flat rate, with which beneficiaries may use one fan, one light bulb and a television, said officials. The scheme extends the benefits to unorganised labourers as well, with power being supplied at the fixed flat rate.

Of the Rs 5,100 crore, the government will pay Rs 1,806 crore as subsidy to discoms; while Rs 1,806 crore will be borne by discoms themselves. The surcharge on the defaults — close to Rs 1,500 crore — will also be forgone by the discoms.

This is the second time Chouhan has announced a power bill waiver. The first was in June 2013 when electricity dues to the tune of Rs 2,000 crore were written off with the government paying a subsidy of Rs 652 crore, and the rest borne by discoms. Both waivers were announced ahead of assembly elections, and the latest one will benefit nearly 2.5 crore voters — half of MP's electorate.