Free power accounted for 95-99 per cent of the state government’s total subsidy bill in the past five years (2012-17). In a report, the Comptroller and Auditor General (CAG) of India has called for a review of the decision to continue with power subsidy to farmers.

As per the report, subsidies constituted 13 to 16 per cent of the total committed expenditure on the revenue account.

As per the report, during 2012-17, the revenue deficit ranged from Rs 6,537 crore to Rs 8,550 crore, of which power subsidy accounted for 57-77 per cent. About 36-70 per cent of the net borrowings available with the state during this period were utilised for paying the power subsidy bill.

Though power subsidy to the agricultural sector increased from 46 per cent to 71 per cent of the total power subsidy during 2014-17, the contribution of agriculture to GSDP (gross state domestic product) declined from 16.07 to 15.06 per cent.

As agricultural power supply is still unmetered, the subsidy of Rs 10,460 crore paid to the PSPCL for providing free power to farmers during 2014-17 was on an estimation basis.