Direct Benefit Transfer: State Saves 33 MU of Power in Agriculture Sector

In Srikakulam district of Andhra Pradesh, a trial programe for the Direct Benefit Transfer (DBT) program for agricultural energy connections was begun around a year ago. During the 2020–21 financial year, the 26,083 agricultural connections used around 101 million units of power.

Since the program was introduced, the number of connections have climbed to 28,393 in the 2021–22 fiscal year. However, the consumption was kept to a minimum of 67.86 MU, saving the energy department 33.75 MU. The DBT (direct benefit transfer) plan is already being implemented in several places across the nation by installing meters for agricultural connections.

The state government will deposit the entire money for the farmers’ electricity bill into their accounts as part of the DBT programe. Based on the power utility reports that have been provided, this will be carried out.

“Even though Andhra Pradesh has chosen to implement the DBT plan as part of reforms proposed by the Union government, the state government has taken all necessary precautions to preserve the interests of farmers,” according to State Energy Minister Peddireddi Ramachandra Reddy.

Farmers do not have to pay anything out of pocket. The government will deposit all of the farmers’ electrical bills into their accounts. The farmers will pay the DISCOMs in turn. The farmers will thereafter have the authority to inquire about the quality of power from the power utilities. This will improve the power utilities’ accountability and responsibility.

“Farmers are quite happy about the scheme as more than 97% of the farmers have given their consent. This is a major development towards strengthening the energy sector. The state government will continue the free power scheme for the agriculture sector for the next 30 years. For this, the AP government entered into an agreement with the Solar Energy Corporation of India for purchasing 7,000 MW power exclusively for free power scheme,” said the state energy minister.

The government will open separate accounts, according to representatives of the energy department, that will only be used to pay the DISCOMs; there won’t be any chance for the banks to change the accounts to cover other debts.