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HP minister justifies scrapping power subsidy for taxpayers

He said that the electricity board in Himachal Pradesh had been operating at a loss. To ensure its sustainability and improve revenue, the government decided to abolish electricity subsidies for economically affluent individuals and income tax payers.

News Arena Network - Shimla - UPDATED: July 20, 2024, 08:38 PM - 2 min read

Education Minister Rohit Thakur.

HP minister justifies scrapping power subsidy for taxpayers

Education Minister Rohit Thakur.


The state government today dismissed accusations made by opposition leader Jai Ram Thakur, state BJP President Dr Rajiv Bindal and other senior BJP leaders on scrapping of the electricity subsidy for affluent individuals and taxpayers as misleading and defamatory. 

 

In a statement here, Education Minister Rohit Thakur said the present state government had not imposed any electricity tax to burden common people, but was addressing the financial challenges faced by the Electricity Board.

 

He said that the electricity board in Himachal Pradesh had been operating at a loss. To ensure its sustainability and improve revenue, the government decided to abolish electricity subsidies for economically affluent individuals and income tax payers.

 

He said the Congress government had initially promised 300 units of free electricity to all households before the elections to provide substantial relief to common people and help lower-income families manage their expenses better. However, after reviewing the financial state of the electricity board, it became evident that providing such a large subsidy across the board would not be practical and sustainable in the long run without distinguishing between the rich and the poor.

 

The Minister pointed out that the previous government had introduced 125 units of free electricity for all. While this provided some relief, it also added to the financial burden of the electricity board. Continuing this 'Blanket Subsidy' without differentiating between economically weaker sections and affluent consumers would have exacerbated the department’s losses.

 

To address these issues, the present state government decided to revise the policy. The current approach focuses on removing subsidies for Income Tax Payers and economically affluent individuals while continuing to support those who genuinely need financial assistance.

 

“This targeted subsidy ensures that limited resources are used more effectively, and the financial health of the electricity board is maintained. By increasing revenue through this revised subsidy policy, the government aims to make Himachal a more prosperous and self-reliant state. The additional revenue earned would be used for development projects and infrastructure improvements, benefiting the entire state,” Thakur said.

 

He questioned the well positioned opposition leaders, whether they are in real need of subsidy or whether it should be given to those who are living in adverse conditions.

 

Thakur stated that the revised policy aligns with the goal of inclusive growth and would help overcome the losses of the electricity board. By directing subsidies towards economically weaker sections, the government ensures that the most vulnerable populations receive the support they need, while encouraging those who can afford to pay for their electricity to contribute fairly. He added that the adjustment to the electricity subsidy policy was necessary steps to ensure financial sustainability, equitable resource distribution and the long-term prosperity of Himachal Pradesh.

 

He advised the opposition leaders to accept and respect the mandate of the people of the state and help the government by roping in financial help from the central government to support their own state and people. He said that instead of creating hassles in the smooth functioning of the democratically elected government, the BJP leaders should appreciate the developmental moves and welfare decisions taken by the present government.

 

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