Lok Sabha Question No. 1975 (UNSTARRED), answered on 2022-07-28
Subject: Free Electricity to Households and Industries
Ministry: POWER
Asked by: P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1975

## ANSWERED ON 28.07.2022

## FREE ELECTRICITY TO HOUSEHOLDS AND INDUSTRIES

1975.  SHRI P.C. MOHAN:

Will the Minister of POWER be pleased to state:

- (a) the quantum of free electricity provided to households and industries across the country during the last three years and the current years, State/UT-wise;
- (b) the bifurcated details of household  and  industrial consumption  of  power, State/UT-wise;
- (c) whether  the  Government  has  observed  an  increase  or  decrease  in  power consumption since announcement of such schemes during the said period and if so, the details thereof State/UT-wise;
- (d) whether  the  Government  has  undertaken  any  study  or  survey  to  understand positive or negative externalities of such announcements; and
- (e) if  so, whether its findings have been circulated as advisory to States/UTs and if not, the reasons therefor?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) to (e) : Tariffs  for  various  category  of  consumers  of  DISCOMs  is  decided  by  the respective  State  Electricity  Regulatory  Commission  (SERC)  while  the  decisions  of subsidies and/or free power is taken by the respective State Governments.

As  per  information  available,  the  overall  subsidies  to  all  consumers including Household and Industrial consumers also including the free power cost burden in the year 2020-21 was Rs.1,32,416 Crores. State-wise details for the last three years are annexed as Annexure-I. The State-wise consumption of power in Million Units (MUs) across  various  categories  of  consumers  over  the  past  three  years  is  enclosed  as Annexure-II.

Section  65  of  the  Electricity  Act,  2003  allows  the  State  Governments  to grant subsidies to any categories of consumers, in advance. A similar provision exists in the National Tariff Policy, 2016. The Tariff policy also envisages that subsidies should be targeted effectively and in a transparent manner. While the policy envisages that the extent of subsidies to different categories of consumers is the prerogative of the State Governments,  the  policy  also  mentions  that  the  provision  of  free  electricity  is  not desirable as it encourages wasteful consumption of electricity.

The National Electricity Policy, 2005 further provides that the States may give advance subsidies in line with Section 65 of the Electricity Act in which case the necessary budget provision would be required to be made in advance so that the Utility does not suffer financial problems that may affect their operations.

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ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (e) OF UNSTARRED QUESTION NO. 1975 ANSWERED IN THE LOK SABHA ON 28.07.2022

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(Amount in Rs. Crores)

| Tariff Subsidy Booked     | Tariff Subsidy Booked   | Tariff Subsidy Booked   | Tariff Subsidy Booked   |
|---------------------------|-------------------------|-------------------------|-------------------------|
| States /UTs               | (2018-19)               | (2019-20)               | (2020-21)               |
| State Sector              | 109,290                 | 117,485                 | 129,267                 |
| Andaman & Nicobar Islands | -                       | -                       | -                       |
| Andhra Pradesh            | 6,052                   | 7,780                   | 10,265                  |
| Arunachal Pradesh         | 111                     | -                       | -                       |
| Assam                     | 262                     | 290                     | 418                     |
| Bihar                     | 3,843                   | 5,189                   | 6,021                   |
| Chandigarh                | -                       | -                       | -                       |
| Chattisgarh               | 3,564                   | 4,249                   | 3,995                   |
| Dadra & Nagar Haveli      | -                       | -                       | -                       |
| Daman & Diu               | -                       | -                       | -                       |
| Goa                       | -                       | -                       | 342                     |
| Gujarat                   | 6,944                   | 6,022                   | 6,911                   |
| Haryana                   | 7,352                   | 6,991                   | 5,566                   |
| Himachal Pradesh          | 445                     | 497                     | 488                     |
| Jammu & Kashmir           | 1,200                   | 1,200                   | 1,200                   |
| Jharkhand                 | 1,250                   | 1,329                   | 1,356                   |
| Karnataka                 | 11,883                  | 11,864                  | 12,108                  |
| Kerala                    | -                       | -                       | 530                     |
| Lakshadweep               | -                       | -                       | -                       |
| Madhya Pradesh            | 11,615                  | 16,722                  | 19,595                  |
| Maharashtra               | 10,346                  | 8,008                   | 9,484                   |
| Manipur                   | 120                     | 120                     | 269                     |
| Meghalaya                 | 18                      | 10                      | 18                      |
| Mizoram                   | 150                     | 116                     | 83                      |
| Nagaland                  | 286                     | -                       | -                       |
| Odisha                    | -                       | -                       | -                       |
| Puducherry                | 4                       | 6                       | 3                       |
| Punjab                    | 8,636                   | 9,212                   | 11,054                  |
| Rajasthan                 | 10,812                  | 12,921                  | 16,545                  |
| Sikkim                    | -                       | 5                       | 4                       |
| Tamil Nadu                | 7,694                   | 8,053                   | 8,270                   |
| Telangana                 | 5,652                   | 5,652                   | 5,652                   |
| Tripura                   | -                       | 47                      | 54                      |
| Uttar Pradesh             | 10,070                  | 10,120                  | 7,661                   |
| Uttarakhand               | -                       | -                       | -                       |
| West Bengal               | 982                     | 1,084                   | 1,374                   |
| Private Sector            | 1,699                   | 2,437                   | 3,149                   |
| Delhi                     | 1,699                   | 2,437                   | 3,149                   |
| Gujarat                   | -                       | -                       | -                       |
| Maharashtra               | -                       | -                       | -                       |
| Uttar Pradesh             | -                       | -                       | -                       |
| West Bengal               | -                       | -                       | -                       |
| Grand Total               | 110,989                 | 119,921                 | 132,416                 |

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (e) OF UNSTARRED QUESTION    NO. 1975 ANSWERED IN THE LOK SABHA ON 28.07.2022

## **************

|                           | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   | Category wise Energy Sold 2019-20 2020-21   |
|---------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| States/ UTs               | Domestic (MU)                               | Commercial (MU)                             | 2018-19 Agricultural (MU)                   | Industrial (MU)                             | Others (MU)                                 | Domestic (MU)                               | Commercial (MU)                             | Agricultural (MU)                           | Industrial (MU)                             | Others (MU)                                 | Domestic (MU)                               | Commer- cial (MU)                           | Agricultural (MU)                           | Industrial (MU)                             |                                             | Others (MU)                                 |
| State Sector              | 253,714                                     | 80,704                                      | 216,069                                     | 282,284                                     | 102,607                                     | 273,863                                     | 94,927                                      | 208,912                                     | 276,187                                     | 102,469                                     | 268,117                                     | 67,818                                      | 215,906                                     | 226,116                                     | 92,108                                      | 92,108                                      |
| Andaman & Nicobar Islands | 134                                         | 60                                          | 1                                           | 21                                          | 39                                          | 140                                         | 63                                          | 1                                           | 25                                          | 40                                          | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Andhra Pradesh            | 14,042                                      | 4,556                                       | 15,170                                      | 17,179                                      | 3,619                                       | 15,581                                      | 5,174                                       | 15,054                                      | 16,542                                      | 8,465                                       | 16,535                                      | 3,656                                       | 16,170                                      | 14,644                                      | 11,489                                      | 11,489                                      |
| Arunachal Pradesh         | 172                                         | 52                                          | -                                           | 144                                         | 89                                          | 178                                         | 55                                          | 0                                           | 167                                         | 56                                          | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Assam                     | 3,476                                       | 1,097                                       | 47                                          | 1,642                                       | 1,245                                       | 3,819                                       | 1,112                                       | 47                                          | 1,075                                       | 2,725                                       | 5,212                                       | -                                           | 37                                          | 1,012                                       | 2,525                                       | 2,525                                       |
| Bihar                     | 11,505                                      | 2,068                                       | 727                                         | 3,133                                       | 2,646                                       | 14,657                                      | 2,127                                       | 933                                         | 3,344                                       | 1,613                                       | 16,454                                      | 2,398                                       | 1,244                                       | 3,104                                       | 1,143                                       | 1,143                                       |
| Chandigarh                | 705                                         | 473                                         | 1                                           | 260                                         | 306                                         | 629                                         | 469                                         | 2                                           | 363                                         | 365                                         | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Chhattisgarh              | 5,180                                       | 921                                         | 4,417                                       | 9,539                                       | 8,002                                       | 5,392                                       | 936                                         | 4,264                                       | 9,618                                       | 7,245                                       | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Dadra & Nagar Haveli      | 129                                         | 34                                          | 7                                           | 5,887                                       | 15                                          | 149                                         | 37                                          | 6                                           | 6,084                                       | 12                                          | 157                                         | 33                                          | 5                                           | 5,092                                       | 88                                          | 88                                          |
| Daman & Diu               | 134                                         | 53                                          | 5                                           | 2,229                                       | 22                                          | 148                                         | 51                                          | 4                                           | 2,283                                       | 30                                          | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Goa                       | 1,161                                       | 582                                         | 27                                          | 1,986                                       | 35                                          | 1,179                                       | 560                                         | 32                                          | 2,012                                       | 55                                          | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Gujarat                   | 11,647                                      | 287                                         | 19,781                                      | 46,205                                      | 3,319                                       | 12,169                                      | 1,916                                       | 18,836                                      | 44,147                                      | 3,549                                       | 13,034                                      | 4,855                                       | 20,190                                      | 37,987                                      | 3,693                                       | 3,693                                       |
| Haryana                   | 9,630                                       | 4,510                                       | 9,954                                       | 13,991                                      | 7,860                                       | 11,049                                      | 4,818                                       | 10,562                                      | 13,757                                      | 4,935                                       | 11,976                                      | 4,006                                       | 10,006                                      | 12,663                                      | 4,515                                       | 4,515                                       |
| Himachal Pradesh          | 2,106                                       | 615                                         | 63                                          | 5,335                                       | 4,610                                       | 2,194                                       | 623                                         | 57                                          | 5,323                                       | 4,473                                       | 2,329                                       | 518                                         | 73                                          | 4,769                                       | 4,378                                       | 4,378                                       |
| Jammu & Kashmir           | 3,979                                       | 992                                         | 434                                         | 1,848                                       | 2,147                                       | 3,427                                       | 887                                         | 306                                         | 1,366                                       | 1,772                                       | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Jharkhand                 | 5,442                                       | 713                                         | 211                                         | 2,703                                       | 208                                         | 5,666                                       | 878                                         | 194                                         | 2,382                                       | 284                                         | 4,881                                       | 677                                         | 150                                         | 2,015                                       | 303                                         | 303                                         |
| Karnataka                 | 12,856                                      | 7,070                                       | 22,610                                      | 10,324                                      | 5,477                                       | 13,643                                      | 12,250                                      | 15,541                                      | 10,434                                      | 6,007                                       | 13,872                                      | 4,973                                       | 21,089                                      | 8,381                                       | 6,468                                       | 6,468                                       |
| Kerala                    | 10,864                                      | 3,221                                       | 338                                         | 5,835                                       | 2,279                                       | 11,776                                      | 3,402                                       | 373                                         | 5,798                                       | 1,612                                       | 12,700                                      | 2,982                                       | 403                                         | 1,087                                       | 5,576                                       | 5,576                                       |
| Lakshadweep               | 36                                          | 3                                           | -                                           | 1                                           | 9                                           | 36                                          | 3                                           | -                                           | 0                                           | 9                                           | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Madhya Pradesh            | 12,681                                      | 2,962                                       | 20,700                                      | 10,527                                      | 3,430                                       | 14,703                                      | 3,223                                       | 23,426                                      | 10,932                                      | 3,469                                       | 10,815                                      | 2,073                                       | 16,708                                      | 7,485                                       | 2,582                                       | 2,582                                       |
| Maharashtra               | 19,719                                      | 7,277                                       | 33,853                                      | 37,789                                      | 12,101                                      | 20,337                                      | 7,963                                       | 31,943                                      | 36,440                                      | 12,024                                      | 21,416                                      | 4,836                                       | 33,909                                      | 38,094                                      | 7,228                                       | 7,228                                       |
| Manipur                   | 386                                         | 75                                          | 2                                           | 31                                          | 243                                         | 458                                         | 89                                          | 2                                           | 37                                          | 218                                         | 546                                         | 121                                         | 1                                           | 20                                          | 178                                         | 178                                         |
| Meghalaya                 | 417                                         | 66                                          | 0                                           | 486                                         | 769                                         | 465                                         | 99                                          | 0                                           | 550                                         | 699                                         | 500                                         | 82                                          | 0                                           | 621                                         | 678                                         | 678                                         |
| Mizoram                   | 228                                         | 61                                          | 0                                           | 14                                          | 287                                         | 296                                         | 58                                          | 0                                           | 11                                          | 371                                         | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Nagaland                  | 351                                         | 83                                          | -                                           | 52                                          | 110                                         | 233                                         | 50                                          | 0                                           | 10                                          | 115                                         | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Odisha                    | 7,253                                       | 2,446                                       | 705                                         | 6,990                                       | 1,975                                       | 7,297                                       | 2,257                                       | 678                                         | 6,752                                       | 2,529                                       | 5,498                                       | 1,507                                       | 348                                         | 3,468                                       | 1,495                                       | 1,495                                       |
| Puducherry                | 722                                         | 213                                         | 60                                          | 1,548                                       | 111                                         | 771                                         | 203                                         | 61                                          | 1,551                                       | 108                                         | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Punjab                    | 14,164                                      | 3,487                                       | 11,227                                      | 16,958                                      | 1,610                                       | 14,144                                      | 4,061                                       | 11,538                                      | 17,559                                      | 749                                         | 15,324                                      | 3,283                                       | 13,051                                      | 16,428                                      | 1,644                                       | 1,644                                       |
| Rajasthan                 | 11,984                                      | 4,629                                       | 22,716                                      | 15,487                                      | 7,893                                       | 12,957                                      | 4,913                                       | 25,012                                      | 14,463                                      | 7,538                                       | 13,400                                      | 3,858                                       | 28,504                                      | 13,338                                      | 7,363                                       | 7,363                                       |
| Sikkim                    | 107                                         | 41                                          | -                                           | 203                                         | 790                                         | 108                                         | 42                                          | -                                           | 228                                         | 601                                         | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
| Tamil Nadu                | 27,423                                      | 12,697                                      | 13,078                                      | 18,347                                      | 4,581                                       | 29,141                                      | 13,479                                      | 13,829                                      | 17,375                                      | 3,567                                       | 30,783                                      | 10,416                                      | 13,976                                      | 15,202                                      | 3,245                                       | 3,245                                       |
| Telangana                 | 11,298                                      | 5,651                                       | 21,936                                      | 13,950                                      | 8,747                                       | 12,257                                      | 5,933                                       | 20,978                                      | 13,763                                      | 8,533                                       | 12,681                                      | 4,707                                       | 19,649                                      | 12,466                                      | 9,947                                       | 9,947                                       |
| Tripura                   | 487                                         | 57                                          | 32                                          | 40                                          | 2,133                                       | 531                                         | 72                                          | 34                                          | 40                                          | 1,929                                       | 520                                         | 64                                          | 34                                          | 38                                          | 1,783                                       | 1,783                                       |
| Uttar Pradesh             | 39,531                                      | 8,199                                       | 16,107                                      | 16,367                                      | 7,891                                       | 43,005                                      | 11,093                                      | 13,596                                      | 15,230                                      | 8,561                                       | 43,306                                      | 7,691                                       | 18,802                                      | 13,201                                      | 7,372                                       | 7,372                                       |
| Uttarakhand               | 2,849                                       | 1,298                                       | 345                                         | 6,666                                       | 1,483                                       | 3,114                                       | 1,396                                       | 203                                         | 6,417                                       | 1,409                                       | 3,308                                       | 1,215                                       | 225                                         | 5,763                                       | 1,207                                       | 1,207                                       |
| West Bengal               | 10,915                                      | 4,154                                       | 1,516                                       | 8,567                                       | 6,528                                       | 12,216                                      | 4,636                                       | 1,399                                       | 10,108                                      | 6,803                                       | 12,872                                      | 3,868                                       | 1,332                                       | 9,240                                       | 7,207                                       | 7,207                                       |
| Private Sector            | 23,418                                      | 11,693                                      | 66                                          | 11,046                                      | 9,394                                       | 24,708                                      | 11,783                                      | 49                                          | 10,932                                      | 6,624                                       | 20,947                                      | 6,730                                       | 53                                          | 4,630                                       | 4,237                                       | 4,237                                       |
| Delhi                     | 15,121                                      | 6,493                                       | 33                                          | 3,443                                       | 6,604                                       | 16,073                                      | 6,453                                       | 21                                          | 3,404                                       | 3,785                                       | 16,104                                      | 4,604                                       | 40                                          | 2,819                                       | 3,849                                       | 3,849                                       |
| Gujarat                   |                                             | 2,207                                       | 7                                           |                                             |                                             | 3,752                                       | 2,222                                       | 5                                           |                                             | 237                                         | -                                           | -                                           | -                                           | -                                           | -                                           | -                                           |
|                           | 3,631                                       |                                             | -                                           | 5,033                                       | 233                                         |                                             | 3,023                                       | -                                           | 4,892 785                                   | 2,232                                       | 4,254                                       | 2,093                                       | 0                                           | 809                                         | 13                                          | 13                                          |
| Maharashtra Uttar Pradesh | 4,209 452                                   | 2,932 34                                    | 26                                          | 849 1,002                                   | 2,179 336                                   | 4,288 586                                   | 38                                          | 22                                          | 1,078                                       | 357                                         | 588                                         | 34                                          | 13                                          | 1,002                                       | -                                           | -                                           |
| West Bengal               | 6                                           | 26                                          | -                                           | 719                                         | 42                                          | 10                                          | 48                                          | -                                           | 773                                         | 14                                          | -                                           | -                                           | -                                           | -                                           | 230,745                                     |                                             |
| Grand Total               | 277,132                                     | 92,397                                      | 216,135                                     | 293,330                                     | 112,001                                     | 298,571                                     | 106,711                                     | 208,961                                     | 287,119                                     | 109,094                                     | 289,065                                     | 74,549                                      | 215,959                                     | 96,344                                      | 96,344                                      | 96,344                                      |

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