After farm loan waiver, Maharashtra to write off Rs 48,000-crore farm electricity dues

3 min readMumbaiJul 16, 2026 12:23 AM IST

“The government is making efforts to increase revenue through industry and the services sector. As our revenue grows, we will be able to make greater allocations for the agriculture sector,” Fadnavis said. (File image)

Nearly a month after announcing a farm loan waiver that is estimated to cost the exchequer over Rs 36,500 crore, the Maharashtra government on Wednesday announced a one-time waiver of Rs 48,000 crore in pending electricity dues of farmers.

Chief Minister Devendra Fadnavis made the announcement at a function organised by the BJP in Mumbai to felicitate him for the recently announced farm loan waiver. Declaring that his government was committed to easing the burden on farmers, Fadnavis said all pending electricity bills of farmers using agricultural pumps of up to 7 HP would be written off.

“Since our government came to power, we have given free electricity to farmers using agriculture pumps up to seven HP. For this, we make an annual budgetary allocation of Rs 25,000 crore to compensate power companies. But old pending bills continue to remain in every farmer’s name and they are asked to clear these dues when they seek a new electricity connection. To ensure farmers are not subjected to such pending bills, I announce a complete electricity waiver,” Fadnavis said.

The decision effectively clears the backlog of unpaid electricity dues accumulated over the years while continuing the state’s existing policy of providing free electricity to agricultural pump consumers through an annual subsidy. With this scheme, the government will not only bear farmers’ future electricity bills but will also absorb the entire stock of old dues, estimated at Rs 48,000 crore.

This is not the first time the state has announced relief on farm electricity bills. In the 2024-’25 budget that was presented ahead of the elections, the then Mahayuti government introduced free electricity for agricultural pump connections up to 7.5 HP, benefiting around 44 lakh farmers, while promising to take over the cost of their electricity consumption through a budgetary subsidy. The government also indicated that pending electricity dues of such consumers would be addressed. With Wednesday’s announcement, the government is writing off these legacy dues completely.

The announcement adds another huge financial commitment to the state, coming close on the heels of the expanded Punyashlok Ahilyadevi Holkar farm loan waiver scheme. The Cabinet on July 10 approved changes to the scheme by removing the earlier Rs 50,000 cap for beneficiaries of the 2019 loan waiver programme. The revised scheme is expected to benefit 56 lakh farmers at an estimated cost of Rs 36,585 crore, with Fadnavis indicating that the outlay could eventually increase to around Rs 42,000 crore after the expanded eligibility criteria.

The Mukhyamantri Majhi Ladki Bahin Yojana — state’s flagship cash assistance scheme for women — has already cost the exchequer more than Rs 60,000 crore since its launch. The scheme covers over 1.5 crore women, down from a peak of around 2.43 crore after a verification drive identified more than 92 lakh ineligible beneficiaries. Payments made to beneficiaries later found to be ineligible are estimated at nearly Rs 14,000 crore.

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“The government is making efforts to increase revenue through industry and the services sector. As our revenue grows, we will be able to make greater allocations for the agriculture sector,” Fadnavis said.

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