Forum for Good Governance Calls for Review of Gruha Jyothi Free Electricity Scheme to Telangana Government

The Forum for Good Governance has urged the Telangana government to reassess the Gruha Jyothi free electricity scheme and restrict its benefits to economically weaker households, warning that the current policy could strain the State’s finances and electricity distribution system. 

In a memorandum submitted to Chief Minister A. Revanth Reddy on Wednesday (January 21), forum president M. Padmanabha Reddy noted that the scheme currently provides free electricity to households consuming up to 200 units per month, irrespective of income. It is estimated to benefit around 40 lakh families and cost the exchequer nearly ₹5,500 crore annually.

Power Shortages and Financial Strain

The forum highlighted that at the time of Telangana’s formation in June 2014, the State was generating only about 50% of its power requirement. While new thermal power projects such as Bhadradri, Yadadri, and Kothagudem Stage VII were proposed to improve availability, delays in completion forced the State to rely on electricity purchases from other States and private agencies. Despite perceptions of self-sufficiency, the financial health of power distribution companies has deteriorated sharply.

Impact on Agriculture and Water Resources

The forum also pointed out that providing free electricity to about 25 lakh agricultural pump sets has encouraged a shift in cropping patterns towards paddy cultivation, making Telangana the highest paddy-producing State in the country. This has led to excessive groundwater extraction and a steady decline in the water table. According to the forum, free power for agriculture should ideally have been limited to two pump sets per farmer, with additional connections billed at standard rates.

Also Read: Delhi Free LPG Cylinder Scheme: Eligible Members to Receive Cash Instead of Cylinder

Economic Concerns and Welfare Trade-offs

The forum raised concerns that many Gruha Jyothi beneficiaries own permanent houses and consumer goods such as two-wheelers, mobile phones, televisions, and refrigerators, and may not require State support. While politically attractive, the scheme is economically unsustainable. It further argued that large-scale welfare measures involving free distribution have diverted resources from essential sectors like education, healthcare, and employment generation, and reduced local labour participation, increasing reliance on migrant workers in agriculture and industry.

Urging a review of the policy, the forum requested the Chief Minister to revise eligibility criteria so that only genuinely poor households receive the benefits of the Gruha Jyothi scheme.

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