Key Messages

The subsidy to the agricultural sector in Karnataka has seen a whopping increase of 86% - from INR 4,993 crore in FY13 to INR 9,295 crore in FY18 - in just five years. A large portion of this subsidy can be saved by the government by merely mapping the already segregated agricultural feeders with associated distribution transformers and irrigation pump (IP) sets. Mapping will help the distribution company (DISCOM) assess the actual number of active IP sets drawing power, resulting in a better estimate of electricity consumed by them.

This could help the state save around INR 550 crore subsidy/year, even if it keeps on supplying free power to the agricultural sector.

 

(The article has been written by Rishu Garg with inputs from Mallik EV and Hanumanth Raju GV)

Tackling Increasing Subsidy in Agriculture Sector