Punjab has allocated Rs 1.25 lakh crore for free agricultural electricity since the program’s inception.

Punjab has invested a substantial Rs 1.25 lakh crore in providing free electricity for agricultural purposes since the program’s launch. This initiative marked a significant milestone in 2005-06 when the total subsidy expenditure first exceeded Rs 1,000 crore, amounting to Rs 1,435 crore, with Rs 1,385 crore specifically allocated for agricultural electricity. By 2007-08, the subsidy bill escalated further, surpassing Rs 2,000 crore and reaching Rs 2,848 crore, of which Rs 2,284 crore was dedicated to free power for farmers. For the fiscal year 2025-26, the state government has earmarked Rs 20,500 crore for power subsidies out of a total budget of Rs 2,36,080 crore. This allocation includes nearly Rs 10,000 crore for the agricultural sector, which represents the largest subsidy category, alongside Rs 7,614 crore for domestic consumers and Rs 2,893 crore for industrial use. Currently, approximately 14 lakh agricultural tubewells benefit from free electricity in Punjab, a significant increase from the 2.8 lakh tubewells recorded in the late 1980s.

However, the extensive subsidy program has contributed to a worsening groundwater crisis in the region. Environmental experts have raised concerns about the implications of advancing the paddy-sowing date to June 1, as this change will place additional strain on groundwater resources until the arrival of the monsoon. A committee established by the National Green Tribunal, which included representatives from Punjab Agriculture University and pollution control boards, had previously recommended a later sowing season, around June 25, to mitigate these pressures. Experts have indicated that groundwater levels are declining at an alarming rate of nearly one meter per year, and the early sowing of paddy is exacerbating the strain on both groundwater supplies and soil health. Data from the Punjab State Power Corporation Limited reveals that districts with critically low water tables continue to host the highest concentrations of tubewells, with Ludhiana leading at 1.17 lakh tubewells, followed closely by 99,581 in another district.