Bihar Government Announces 125 Units of Free Electricity Ahead of Polls
In a major populist move ahead of Assembly elections, Bihar's government has announced it will provide up to 125 units of free electricity per month to all domestic consumers. The policy, set to benefit an estimated 1.67 crore households, will take effect from August 1, applying to bills from July. Chief Minister Nitish Kumar also announced plans to promote solar power, aiming to produce 10,000 MW in the next three years, including installing solar panels on homes.
Unpacked:
The financial impact has not been disclosed, but subsidizing 125 units monthly for 1.67 crore households will likely require significant state expenditure. The burden is expected to fall on Bihar’s government, possibly impacting its budget allocations for other sectors. Critics may question fiscal sustainability, while supporters argue it relieves household expenses, especially for low-income families.
Several Indian states, like Delhi and Punjab, offer free electricity up to certain limits, but Bihar’s 125-unit cap is relatively generous. Unlike some states, Bihar is coupling this with a major solar push, aiming for 10,000 MW in three years. Such pre-election announcements are common, but the dual focus on consumption subsidy and renewable energy marks a distinctive approach.
Key challenges include securing consumer consent for rooftop installations, managing upfront costs for solar infrastructure, and ensuring grid integration. For the poorest, the government will cover full costs, but others may need subsidies. Logistical hurdles, maintenance, and achieving the 10,000 MW target in three years add complexity, though the plan could reduce long-term reliance on subsidies if successful.
The announcement is widely seen as a populist measure to attract voters ahead of the October–November 2025 elections. By addressing energy costs—a key concern for rural and low-income households—the ruling party may strengthen its base. However, opposition could critique fiscal prudence or implementation feasibility. The solar initiative may also appeal to environmentally conscious voters, adding a modern dimension to traditional welfare politics.