Karnataka government to settle over ₹6,500 crore in electricity bills of GPs

The state government has agreed to clear electricity dues of ₹6,509 crore of all gram panchayats in Karnataka, Rural Development and Panchayat Raj Minister Priyank Kharge said on Friday. Rural local authorities owe this amount for consumption between 2015 and 2023.

“The 5,950 gram panchayats had dues of around ₹6,509.9 crore in pending electricity bills for drinking water supply and street lighting. The state government agreed to settle the amount. Chief Minister Siddaramaiah assured that ₹5,257.7 crore would be settled through securitization guarantee and ₹1,252.2 crore would be waived,” Mr. Kharge said.

He was responding to a question from MP Thimmaiah in the Legislative Council.

The total electricity charges for drinking water supply and street lighting of Gram Panchayats from April 2023 to September 2024 was ₹3,719.2 crore. This included a principal amount of ₹2,749.54 crore and interest of ₹969.66 crore. This amount must be paid to the electricity supply companies.

The state government has approved ₹1,202.18 crore in gram panchayats as grants from the State Finance Commission or other forms of assistance. Out of this, GPs can pay electricity bills totaling ₹391.79 crore. The rest must be pooled by general practitioners from their local resources.

Solar project

The state government is launching Hombelaku, a new solar power project to electrify villages. The program was launched as a pilot project in 50 general practitioners and will be gradually extended to all villages. The government is also considering setting up microgrids in which GPs will invest in their own solar farms, use the energy produced and sell some of it back to the grid.

In response to a subsequent question, the minister said the government would consider a proposal to increase subsidies for GPs in remote and hilly areas and those in financially weak village groups.

The government has released a grant of ₹273.78 crore towards the honorarium of elected representatives of Gram Panchayats for 2024-25, and the honorarium has been released till December 2024.