Centre nudges States to view farm solarisation as a route to wiping off ₹2.4 lakh crore subsidy bill
GS3Economy · S&T · Environment · Security· Farm subsidies & support· Prelims + Mains·
Why in news
The Ministry of New and Renewable Energy (MNRE) Secretary urged States to adopt farm solarisation to reduce the ₹2.4 lakh crore agricultural electricity subsidy burden.
Background
The MNRE Secretary, Santosh Kumar Sarangi, highlighted Maharashtra as a model state that reduced cross-subsidy charges via decentralized solar and rooftop systems. The MNRE is seeking expanded administrative authority to be recognized as the 'Central Government' under the Electricity Act.
Facts for Prelims
- BodyMNRE: Ministry of New and Renewable Energy
- FactAgricultural electricity subsidy bill: ₹2.4 lakh crore
- PlaceMaharashtra: Cited as a successful example of reducing cross-subsidy charges through solarisation
- Act / BillElectricity Act: The legislation under which MNRE seeks expanded administrative authority
For Mains
Q. Discuss how decentralised solar energy can serve as a fiscal tool to reduce the burden of agricultural electricity subsidies on State exchequers.
Dimensions to cover in your answer
- Fiscal sustainability: Reducing the ₹2.4 lakh crore subsidy burden while ensuring rural power access
- Regulatory framework: Need for MNRE to have 'Central Government' status under the Electricity Act for streamlined oversight
Keywords: Fiscal Federalism · Decentralised Energy · Cross-subsidy · Renewable Energy Transition · Subsidy Rationalisation
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