Andhra Pradesh government is going to launch the Agriculture Electricity Cash Transfer Scheme. This scheme will remain applicable for FY 2021-22.
The main objective is to provide free power supply to the farmers working in farm sector.
The state govt. has maintained that the entire bill footing amount will be Rs. 8,400 crore per annum.
AP govt. will also install smart meters to all agricultural power connections.
It is a part of the central govt. suggested reforms which the state govt. had agreed to implement for 2% hike in FRBM Act borrowing limit.
This would facilitate AP govt. to entail an additional loan amount of Rs. 20,000 crore during the current fiscal.
Farmers will not be required to pay a single rupee from their own pockets. However, AP govt. has came out with varying figures on the total number of agriculture power connections in the state.
As the Agriculture Budget 2020-21 and Socio-Economic Survey 2019-20, there were 18.72 lakh agricultural power connections by the end of March.
