Maharashtra Announces ₹48,000 Crore Electricity Dues Write-off for Farmers

The state government’s landmark decision aims to clear historical power arrears for millions of agricultural consumers, effectively providing a clean slate for future growth.

MUMBAI — In a major development for the state’s agrarian sector, Maharashtra Chief Minister Devendra Fadnavis announced on Wednesday a sweeping waiver of ₹48,000 crore in outstanding electricity bill arrears for the state's farmers. This decision, aimed at alleviating long-standing financial distress, is set to benefit millions of cultivators by removing the "hanging sword" of legacy debt that has frequently hindered access to new power connections and operational upgrades.

The announcement was made during a gratitude ceremony organized by the Bharatiya Janata Party (BJP) Kisan Morcha at the Yashwantrao Chavan Pratishthan in Mumbai. The event was held to acknowledge the government’s recent efforts in agricultural reform, including a separate farm loan waiver scheme estimated at ₹36,585 crore.

Eliminating Historical Debt for Growth

The government’s decision focuses on farmers utilizing agricultural pumps of up to 7.5 horsepower (HP). While the state has already maintained a policy of providing free electricity for these pumps—backed by an annual budgetary subsidy of ₹25,000 crore—many farmers remained trapped by accumulated historical dues.

According to Chief Minister Fadnavis, these outstanding bills served as a persistent barrier, as farmers were often required to clear historical arrears before being granted new electricity connections or facility upgrades. By writing off the ₹48,000 crore in total legacy debt, the administration intends to provide a "clean slate," allowing farmers to focus on productivity and modernization rather than past financial burdens.

Shift Toward Sustainable Infrastructure

Addressing the gathering, Chief Minister Fadnavis emphasized that debt relief serves as an immediate remedy but is not a permanent solution to agricultural distress. He outlined a broader roadmap focused on reducing input costs through technological innovation and infrastructure development.

The administration is currently prioritizing the transition to solar energy. As of July 2026, approximately 76% of Maharashtra’s farmers receive daytime electricity through solar pumps and solar agricultural feeder schemes. The state government has set a target to achieve 100% daytime power supply for all agricultural consumers by the end of the year.

Managing Director of the Maharashtra State Electricity Distribution Company Ltd (MSEDCL), Lokesh Chandra, characterized the waiver as a "win-win" scenario. He noted that while farmers are relieved of their debt, the utility will see the long-unrealized dues cleared from its books through the government’s commitment to bear the financial burden.

Why It Matters

For the average farmer in Maharashtra, this write-off removes a significant bureaucratic and financial hurdle. By clearing legacy power arrears, eligible farmers can now secure necessary power infrastructure to support modern irrigation techniques. Furthermore, the government’s commitment to ensuring 100% daytime power supply via solar feeders aims to reduce the physical hazards associated with night-time irrigation, such as snake bites and other field-related risks, while simultaneously stabilizing the financial health of the state’s power utility.

Key Facts at a Glance

• Debt Cleared: The Maharashtra government will write off ₹48,000 crore in legacy electricity dues.

• Beneficiaries: Agricultural pump users with connections of up to 7.5 HP are eligible for the waiver.

• Solar Targets: Currently, 76% of farmers receive daytime electricity; the state aims for 100% coverage by the end of 2026.

• Ongoing Support: The state continues to allocate ₹25,000 crore annually as a subsidy for agricultural power consumption.

FAQ

1. Who is eligible for the electricity bill waiver?

Farmers using agricultural pumps with a capacity of up to 7.5 HP are eligible for this one-time write-off of pending electricity dues.

2. Does this affect the current free electricity scheme?

No, this announcement is in addition to the existing policy where the government covers electricity costs for eligible agricultural pumps through a dedicated subsidy.

3. Why was this decision necessary now?

Despite the current free power scheme, many farmers could not access new connections or upgrades because their names remained flagged for historical, unpaid bills. This move clears those records entirely.

4. How is the state funding this waiver?

The government has stated that the burden will be covered through budgetary provisions and that it is prioritizing industrial and service-sector tax revenues to sustain these agricultural initiatives.

Official Sources

• Chief Minister’s Office (CMO), Maharashtra

• Maharashtra State Electricity Distribution Company Ltd (MSEDCL)

• Department of Agriculture, Maharashtra: