During the COVID-19 pandemic, the Congress government in Rajasthan announced new subsidies under the Chief Minister's Kisan Mitra Urja Yojana, which will provide significant relief to agricultural power consumers.
The draft of the Mukhyamantri Kisan Mitra Energy Yojana (MKMEY), under which the state government will pay metered agricultural consumers a grant of Rs 1,000 per month and a maximum of Rs. 12,000 per year on energy bills, has been approved by Chief Minister Ashok Gehlot. The state's budget will be hit with a bill of Rs 450 crore.
This scheme's benefits will begin in May 2021. Electricity bills will be issued by discoms to eligible agricultural consumers on a bi-monthly billing structure under the plan. The government will be responsible for 60% of the bill on a pro-rata basis, up to a maximum of Rs 1,000 every month.
Employees of the central and state governments, as well as income tax payers, will not be eligible for agricultural consumer subsidies.
Consumers who are eligible must link their Aadhaar number and bank account to the scheme. Only if the electricity distribution firms do not have any arrears against the user will the grant be paid. The subsidy amount will be payable to the consumer on future invoices after the arrears are paid. The grant will not be modified for any unpaid bills prior to the scheme's implementation month.
If a farmer uses less electricity and has a bill of less than Rs 1,000, the difference between the bill and the grant amount will be transferred in his bank account. Farmers will be encouraged to conserve electricity as a result of this.