Andhra Pradesh Agriculture Electricity Cash Transfer Scheme 2021-22 – Free Power Supply to Farm Sector

September 2, 2020 | Last Modified: September 2, 2020 at 6:06 pm

AP Agriculture Electricity Cash Transfer Scheme is launched by the state government of Andhra Pradesh. The scheme will remain applicable for financial year 2021-21 with the free power supply to the farm sector. The government maintained that it will foot the entire bill amounting to about Rs.8,400 crore per annum.

Andhra Pradesh govt. will install smart meters to all agriculture power connections as parts of the centre suggested feforms that it agreed to implement for 2% hike inFRBM Actborrowing limit that will entail an additional loan of about Rs.20,000 crore to the state during the current fiscal.

AP Agriculture Electricity Cash Transfer Scheme 2021-22

The state government will have to spend an estimated Rs.1,500 crore to install smart meters to the agriculture power connections.The free power to the farm sector was introduced by late Chief Minister Rajasekhara Reddy in May 2004 and subsequent government continued it.

The incumbent YS jagan Mohan Reddy government too claimed that it was developing 10,000 MW solar power plants to ensure uninterrupted free power to the farm sector for the next 30 years.

It was also spending Rs.1,700 crore to improve the transmission system so as to supply power for 9 hours during daytime.

How Cash Transfer Scheme for Power Supply to Agriculture Sector will Work

The process of cash transfer scheme for power sully to agriculture sector is given below :

  • Under AP Cash Transfer New Scheme, farmers will be required to open exclusive bank accounts into which the government will credit the monthly power bill amount
  • Farmers will then have to pay the monthly power charge to the respective Power Distribution Company, according to the guidelines for the scheme

The farmers need not pay a single rupee from their pocket. The government, however, came out with varying figures on the number of agriculture power connection in the state.

While the 2020-21 Agriculture Budget as well as the 2019-20 socio-Economic survey said there were 18.72 lakh agricultural power connection by the end of March, the latest order issued by the Energy Secretary put the figure at 17.55 lakh.

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