Shimla – In a significant policy reform, the Himachal Pradesh Cabinet, led by Chief Minister Sukhvinder Singh Sukhu, has announced the withdrawal of the 125 units of free electricity previously granted to well-off citizens. This decision was made during a cabinet meeting on Friday as part of a broader strategy to address the state’s ongoing financial crisis.

The Cabinet has approved new provisions aimed at rationalizing the electricity subsidy system. Under the revised guidelines, the subsidy will be restricted to ‘One Family One Meter,’ and electricity connections will be linked to ration cards that are seeded with Aadhaar. This approach is intended to ensure that the benefits are directed towards families in genuine need, enhancing the equity of the subsidy distribution.

Minister Harshvardhan Chauhan addressed the media following the meeting, explaining that the Himachal Pradesh Electricity Board is currently facing severe financial difficulties, struggling to meet payroll obligations for its employees. The government’s decision comes in light of the financial liabilities incurred from subsidies established by the previous administration, which have exacerbated the current fiscal challenges.

In a further effort to streamline the subsidy system, the Cabinet has abolished the entire electricity subsidy for a range of high-ranking officials and well-off individuals, including the Chief Minister, former Chief Ministers, members of the legislative assembly, and various other government officers and contractors. This move reflects a commitment to fiscal responsibility while ensuring that the subsidy system is more equitable.

The Cabinet’s decisions are expected to alleviate some financial pressures on the state, allowing for a more sustainable approach to managing electricity subsidies and ensuring that resources are allocated to those who need them most.