Maharashtra Chief Minister Devendra Fadnavis has announced that around 80% of farmers in the state will receive free electricity by December 2026 under the Chief Minister Baliraja Free Electricity Scheme. This ambitious initiative aims to alleviate financial burdens on farmers, improve agricultural productivity, and transition to sustainable energy solutions through the solarisation of agricultural grids.
Farmers using agricultural pumps with a capacity of up to 7.5 horsepower (HP) will receive free electricity under the scheme. The initiative is expected to benefit over 4.74 million farmers, constituting 16% of Maharashtra's electricity consumer base and accounting for 30% of the state's total electricity consumption.
The government plans to invest ₹15,000 crore to separate agricultural electricity grids and solarize them. Once fully implemented, the cost of power generation will drop from ₹7 per unit to ₹2-3 per unit, enabling free electricity for farmers while reducing the financial burden on the state exchequer.
The scheme includes a subsidy provision of ₹14,760 crore annually, covering power tariff waivers and concessions for farmers. The Maharashtra State Electricity Distribution Company Limited (MSEDCL) will receive compensation in advance for subsidized rates.
The scheme is set to run from April 2024 to March 2029, with a review scheduled after three years to assess its progress and make necessary adjustments. By December 2026, the majority of agricultural grids will be solarised, ensuring sustainable free power supply for farmers.
The Chief Minister Baliraja Free Electricity Scheme represents a transformative step toward empowering Maharashtra’s farmers while promoting sustainable energy practices. As implementation progresses, this initiative is expected to significantly enhance agricultural productivity and reduce financial stress on farmers, solidifying Maharashtra’s position as a leader in farmer-centric policies.