Agriculture Electricity Cash Transfer Scheme is going to be launched by the Andhra Pradesh government. This scheme will remain applicable for FY 2021-22. The main objective is to provide free power supply to the farmers working in farm sector. The state govt. has maintained that the entire bill footing amount will be Rs. 8,400 crore per annum.
AP govt. will also install smart meters to all agricultural power connections. It is a part of the central govt. suggested reforms which the state govt. had agreed to implement for 2% hike in FRBM Act borrowing limit. This would facilitate AP govt. to entail an additional loan amount of Rs. 20,000 crore during the current fiscal.
AP Agriculture Electricity Cash Transfer Scheme 2021-22 for Farm Sector
The state govt. of Andhra Pradesh will have to spend an estimated Rs. 1,500 crore amount for installation of smart meters for agriculture power connections. The initiative to provide free power to farm sector was earlier introduced by late CM Y S Rajashekhara Reddy in May 2004 which is continued by next governments. Now the state government will start AP Agriculture Electricity Cash Transfer Scheme from 2021-22 for farm sector.
Present AP govt. under CM Y S Jagan Mohan Reddy has claimed that it was developing 10,000 solar power plants. This is being done in order to ensure uninterrupted free power to the farm sector for the next 30 years. The AP govt. was also spending Rs. 1,700 crore to improve the transmission system so as to supply electricity for 9 hours during daytime.
How the Cash Transfer Scheme for Power Supply to Agriculture Sector will Work
Below is the process how the Cash Transfer Scheme for Agriculture Power Supply will work:-
- In the new AP Agriculture Electricity Cash Transfer Scheme, farmers will have to open their exclusive bank accounts.
- In these bank accounts, govt. will credit the monthly power bill amount.
- Farmers will then have to pay the monthly power charges to their respective Power Distribution Company.
The guidelines for the AP Agriculture Power Supply Cash Transfer Scheme 2021-22 has been issued by the government on 1 September 2020.
Benefits of AP Agriculture Electricity Cash Transfer Scheme
Farmers will not be required to pay a single rupee from their own pockets. However, AP govt. has came out with varying figures on the total number of agriculture power connections in the state. As the Agriculture Budget 2020-21 and Socio-Economic Survey 2019-20, there were 18.72 lakh agricultural power connections by the end of March.
But the latest order issued by the Energy Secretary has put the figure of 17.55 lakh agricultural power connections. AP Agricultural Minister mentioned that “there would not be any change in the existing free power scheme.” The procedure of the AP Agriculture Electricity Cash Transfer Scheme may change but not the entire scheme.