<p>The Karnataka government’s power subsidy scheme for irrigation pump (IP) sets was designed to support small and marginal farmers but it has become a significant drain on the state’s exchequer. An internal government analysis has revealed that at least Rs 5,000 crore of taxpayer money is being misused by wealthy farmers who neither need nor qualify for the subsidy.</p>.<p>This growing misuse has resulted in poor farmers being deprived of the assistance they need. The financial commitment to subsidise IP sets has gone up from Rs 10,118 crore to an estimated Rs 22,387 crore in 2023, an increase of 121 per cent. Currently, over 34 lakh IP sets receive subsidised electricity, up from 20 lakh in 2012. Although this expansion may appear to benefit a broader segment of agriculturists, in reality, the advantages of the subsidy are disproportionately accruing to wealthy farmers with large holdings and multiple IP sets.</p>.<p>Alarmingly, 2.7 lakh Above Poverty Line (APL) families with 4.32 lakh IP sets are receiving subsidies, diverting resources from those who need them the most. This highlights a deeper issue: the absence of a robust monitoring system.</p>.Karnataka govt finds power subsidy misuse of Rs 5,000 crore.<p>The subject of farmers is highly sensitive, with every political party eager to position itself as their champion. The government’s move to identify and remove affluent beneficiaries from the subsidy scheme is both necessary and laudable. By doing so, it can ensure that resources are redirected to the small and marginal farmers who genuinely rely on them.</p>.<p>It is crucial that the opposition refrains from politicising this issue and instead supports the government’s efforts. The primary focus should be on ensuring that the benefits reach those who need them, rather than exploiting the situation for political gain.</p>.<p>To address this, stronger enforcement and auditing measures are essential. However, it is equally important to rethink the sustainability of the scheme. One promising solution is the transition to solar-powered IP sets which would not only reduce the financial burden of subsidised power but also promote environmentally sustainable farming practices.</p>.<p>Solar-powered IP sets can also reduce the strain on the state’s power grid and decrease long-term subsidy commitments. The misuse of Rs 5,000 crore is a stark example of how the rich are benefitting at the expense of the poor. The government must act quickly to thoroughly audit the subsidy scheme, tighten the eligibility criteria, and transition towards green energy solutions. Until these reforms are implemented, the poor will continue to be denied the benefits they deserve, while taxpayers foot the bill for a scheme that has lost its way.</p>
<p>The Karnataka government’s power subsidy scheme for irrigation pump (IP) sets was designed to support small and marginal farmers but it has become a significant drain on the state’s exchequer. An internal government analysis has revealed that at least Rs 5,000 crore of taxpayer money is being misused by wealthy farmers who neither need nor qualify for the subsidy.</p>.<p>This growing misuse has resulted in poor farmers being deprived of the assistance they need. The financial commitment to subsidise IP sets has gone up from Rs 10,118 crore to an estimated Rs 22,387 crore in 2023, an increase of 121 per cent. Currently, over 34 lakh IP sets receive subsidised electricity, up from 20 lakh in 2012. Although this expansion may appear to benefit a broader segment of agriculturists, in reality, the advantages of the subsidy are disproportionately accruing to wealthy farmers with large holdings and multiple IP sets.</p>.<p>Alarmingly, 2.7 lakh Above Poverty Line (APL) families with 4.32 lakh IP sets are receiving subsidies, diverting resources from those who need them the most. This highlights a deeper issue: the absence of a robust monitoring system.</p>.Karnataka govt finds power subsidy misuse of Rs 5,000 crore.<p>The subject of farmers is highly sensitive, with every political party eager to position itself as their champion. The government’s move to identify and remove affluent beneficiaries from the subsidy scheme is both necessary and laudable. By doing so, it can ensure that resources are redirected to the small and marginal farmers who genuinely rely on them.</p>.<p>It is crucial that the opposition refrains from politicising this issue and instead supports the government’s efforts. The primary focus should be on ensuring that the benefits reach those who need them, rather than exploiting the situation for political gain.</p>.<p>To address this, stronger enforcement and auditing measures are essential. However, it is equally important to rethink the sustainability of the scheme. One promising solution is the transition to solar-powered IP sets which would not only reduce the financial burden of subsidised power but also promote environmentally sustainable farming practices.</p>.<p>Solar-powered IP sets can also reduce the strain on the state’s power grid and decrease long-term subsidy commitments. The misuse of Rs 5,000 crore is a stark example of how the rich are benefitting at the expense of the poor. The government must act quickly to thoroughly audit the subsidy scheme, tighten the eligibility criteria, and transition towards green energy solutions. Until these reforms are implemented, the poor will continue to be denied the benefits they deserve, while taxpayers foot the bill for a scheme that has lost its way.</p>
