Telangana Congress Government Initiates Schemes After Economic Concerns: Rs-500 Gas Cylinder and Free Electricity up to 200 Units Unveiled
In response to the alarming economic conditions highlighted in multiple white papers, the Congress government in Telangana has introduced two additional schemes as part of its six poll promises. Chief Minister Revanth Reddy inaugurated these schemes – the Rs-500 gas cylinder (Mahalakshmi scheme) and free electricity up to 200 units (Gruha Jyothi scheme) – in Hyderabad on Tuesday.
To be eligible, beneficiaries must possess white ration cards, an active gas connection in their name, and have applied for government poll guarantees through the Praja Palana program held between December 29 and January 6.
The implementation of these two schemes will require the government to allocate approximately Rs 809.5 crore.
Mahalakshmi Gas Cylinder Scheme:
Under this scheme, consumers will need to pay the full amount at the time of gas cylinder delivery. The Telangana government will provide a monthly advance to Oil Manufacturing Companies (OMCs). These companies, in turn, will transfer the differential amount to the consumer online through Direct Benefit Transfer. For instance, if the cost of an LPG cylinder in Hyderabad is Rs 955, the consumer will receive the differential amount of Rs 455 from the OMC.
State Government Scheme Extends Benefits to Ujjwala Scheme Users: Additional Rs 350 Subsidy
Consumers currently availing subsidized cylinders through the Central government’s Ujjwala scheme will now be included in the state government’s initiative. This inclusion grants them an extra subsidy of Rs 350. Telangana boasts approximately 6 lakh Ujjwala gas connections.
With an estimated 90 lakh white ration card holders in the state, the Congress government is expected to allocate Rs 409.5 crore per gas cylinder for the scheme. The pricing of cylinders varies across districts due to transportation costs, and the distribution will be capped at the average usage by a household over the past three years.
Identifying 40 lakh beneficiaries through the recently concluded Praja Palana program, the scheme will initially cater to this group, with plans to gradually expand to include more beneficiaries.
GRUHA JYOTHI SCHEME
Officials have reported that approximately 1.05 crore households in Telangana consume 200 units of electricity per month. To deliver on the promise of free electricity up to 200 units for these households, the government is estimated to pay around Rs 4,000 crore annually to power distribution companies (discoms). According to official estimates, beneficiaries will commence receiving zero electricity bills starting March.
MONEY MATTERS
The Congress government has inherited a significant debt burden from the previous administration. In a white paper presented in the Assembly addressing the power sector, Deputy Chief Minister Mallu Vikramarka Bhatti revealed that discoms had incurred losses amounting to Rs 62,461 crore as of March 31, 2023, and carried a debt burden of Rs 81,516 crore as of October 31.
Despite the substantial financial challenges, the government has allocated only Rs 2,418 crore for the Gruha Jyothi scheme in the budget. Overall, the state has earmarked Rs 53,196 crore to fulfill its six poll guarantees.