The Hindu Business Line : `Free power to farmers in AP an economic compulsion'

Extending a helping hand to agriculture cannot be construed as anti-reform. Reforms cannot succeed unless they address the problems of the agricultural sector that employs 70 per cent of the work force in the State, according to the former Leader of Opposition in the State Assembly, Dr Y.S. Rajasekhara Reddy.

The Congress (I) had promised free power to farmers in its election manifesto.

Stating that the farmers' level of dependence on electrical pump sets was much higher in Andhra Pradesh compared to other States, the Congress (I) leader said that the cost of power would play a significant role in determining the farm viability because the prices of other inputs like seed, labour, fertilisers, pesticides and the minimum support price were uniform across the country.

Hence, subsidising agricultural pump sets in the State was essential to improve viability of farming operations.

In a press release here on Monday, Dr Reddy explained as to why the Congress (I) had not come out with a similar proposal in other States.

He said that Andhra Pradesh was the only State in the country to be endowed with an ideal mix of hydel and thermal power generation. The State was also endowed with natural gas and coal, which were the cheapest sources of power generation. So, it was possible for the Government to supply free power to farmers in the State.

He said that the Telugu Desam Party (TDP) was "deliberately spreading the rumour" that supply of subsidised power automatically meant compromising on quality of power.

The TDP Government claimed that it was subsiding Rs 2.35 per unit of power supplied to agriculture, which worked out to 90 per cent of the cost of power generation.

"When subsidising 90 per cent does not affect quality of power, how does the offer of subsidy of another 10 per cent will affect quality of power?" he asked.

Dr Reddy contended that it was possible to supply free power to farmers without much financial loss.

The subsidy amount in this regard would be less than Rs 300 crore per annum. Provision of such a subsidy would not compel the future Government to raise taxes.

The TDP was only spreading misinformation by saying that the Government has to raise taxes by ten times for providing free power to farmers.

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