The Himachal Pradesh cabinet voted on Friday to end the free power program for all income tax payers because the Himachal Pradesh State power Board was in dire need of money. The state cabinet decided in a meeting to rationalize the Zero electrical Bill rules for home users. This involves connecting the electrical connections with Aadhar-seeded ration cards and limiting the subsidy to "One Family, One Meter."

In order to eliminate the entire subsidy, the cabinet decided to exclude the Chief Minister, Ex-Chief Ministers, Speaker, Deputy Speaker, Ministers, Ex-Ministers, MPs, Ex-MPs, MLAs, Ex-MLAs, Chairman of Boards/Advisors, OSDs, all government employees classified as Class I and Class II, corporations, boards, including IAS, IPS, HPS, Judicial, Forest, and JAS officers; all government contractors classified as Class A and Class B; and all income taxpayers. All other categories—including BPL and IRDP families—will still get the 125-unit free electricity subsidy for residential users.

income tax payers
Image Source: Mettis Global

Impact on Energy Users

This move is a reaction to the power board's precarious financial situation, as it struggles to pay its staff and is saddled with debt of about Rs 1000 crore. The free electricity program was implemented in 2021–2022 and helped those who used up to 125 units. However, the power board had to reduce this program due to losses.

Notably, BPL families would still be eligible for free power. Rich folks have also set up several meters at their homes in order to take advantage of the program. From now on, the free power offer will only be available to one meter per household. According to reports, just around 20% of the 23 lakh energy users would be impacted by the reversal, as 80% of them will still be receiving benefits from the program.

The Cabinet also authorized compensation for households impacted by the expansion of Kangra Airport and land purchase. In order to accommodate students with exceptional needs, education changes included the introduction of 245 special educator roles, 157 supernumerary principal school cadre positions, and 486 lecturer physical education posts. Additionally, the Cabinet authorized the creation of new roles for police and fire fighters to be deployed from heliports and regularized the employment of eighteen Grameena Vidya Upasaks as junior basic instructors.

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