Skip to main content

200 units of free electricity? How Karnataka continues with its 'unscientific' subsidy

By Shankar Sharma* 
 Recent news items (click here, here, here and here) suggest the issue of the financial crisis being faced by Karnataka's public sector units KPCL, KPTCL and ESCOMs, catering to the energy sector. Though not entirely new, the crisis should be a cause of major concern for the overall financial scenario and the larger welfare of our people in the state. 
 Whereas these power sector entities have been generally facing financial issues for decades, and the financial woes are also being faced by the electric companies in other states also, the increasing level of financial woes within the state, as reported in the media, should mean that the developmental activities in the state can get seriously hampered, if the same are not addressed urgently.
The continued financial burden due to multiple but unscientific subsidies, technical and commercial losses in the system, and the overall inefficiency can only make the situation worse, if corrective measures are not implemented effectively.
One news item has stated: "As per the submissions made before the commission, Escoms will now borrow money to pay transmission fee and power purchase costs to avoid a financial crisis in the power sector."
The recently announced 200 units of free electricity per month can only escalate the financial woes. The fact that all costs associated with the electricity generation, transmission and distributions will only keep increasing, as they are happening all over the world, must not be ignored.
Hence, the challenge for the state can be seen as acute; whereas the revenue from the sale of electricity cannot be increased beyond a certain margin (when we take into account the sensitivity of the price raise as a politically hot issue), the subsidies and freebies will increase the overall cost of electricity. At the same time the costs of taking electricity to the consumer's premises also is increasing.
A multipronged approach is needed to make the electricity sector in the state viable in the medium and long-term. One techno-economically viable option is to encourage various categories of consumers, especially the residential, commercial and agricultural consumers, to optimally harness the rooftop solar PV systems so as to reduce the overall financial burden on the state government.
Since the union government is also providing capita subsidy for such rooftop solar PV systems, the state govt. should embark on a massive campaign to encourage the same along with any financial support if needed.
A domain expert has stated: "Using the Maharashtra government as an example of success, pilots (on rooftop solar OR small size solar PV systems) could be initiated in other states with a national programme on clean energy for agriculture, enhance the reliability and sustainability for rural areas, reduce losses and subsidy burden on states and when linked to a sustainable livelihood program, can accelerate green jobs in rural areas."
It is also credibly reported in the national media that the small size solar PV systems are being deployed in the agricultural sector in the states of Rajasthan and Gujarath with commendable results. The associated policies and experiences in these states should be studied diligently, for implementation in our state.
Option to optimally harness enormous potential of small size solar PV systems will minimise need to divert forest and agricultural lands
In the larger context of the state's overall welfare considerations, it should not be difficult to visualise the techno-economic feasibility of such widespread usage of small size solar PV systems along with suitably designed energy storage batteries, wherever needed (as compared to relying only on large size solar power parks, as is happening in the state), to revolutionise the demand/ supply of electricity in the state for a sustainable and green energy future.
Whereas, the recently announced policy on 200 units of free electricity per month can only directly lead to the escalation of the financial woes of the state, it will also lead to a huge disincentive for the residential consumers to install roof-top SPV systems, and hence will indefinitely delay the green energy transition for the state.
Since the state has no coal reserve within its borders, and has more or less exhausted almost all of its hydro power potential, and also since adding more nuclear power plants is economically non-viable, the roof-top SPV systems must play a critical role in the state's energy scenario.
This option to optimally harness the enormous potential of small size solar PV systems along with suitably designed energy storage batteries, wherever needed, and in as many applications as feasible, will also minimise the need to divert forest and agricultural lands, minimise the pollution/ contamination of air, water and soil.
The concerned authorities in the state energy department should be mandated to come up with a diligently prepared energy policy for the state so as to implement the necessary action plans to encourage highest levels of efficiency, demand side management, energy conservation, and the widespread usage of solar PV systems along with suitably designed energy storage batteries. 
 Effective consultations with the interested individuals and civil society groups will make such an energy policy highly relevant to the needs of the state. Many experienced individuals, such as myself, will be happy to effectively contribute to the associated discussions.
---
*Power and climate policy analyst, electrical engineer with over 40 years of experience in the power sector, including 8 years in Karnataka. This article is based on the author’s representation to Karnataka chief minister Siddaramaiah

Comments

Post a Comment

TRENDING

Academics urge Azim Premji University to drop FIR against Student Reading Circle

  By A Representative   A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.
Post a Comment
»

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

  By Rajiv Shah   This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.
1 comment
»

Love letters in a lifelong war: Babusha Kohli’s resistance in verse

By Ravi Ranjan*  “War does not determine who is right—only who is left.” Bertrand Russell’s words echo hauntingly in our times, and few contemporary Hindi poets embody this truth as profoundly as Babusha Kohli. Emerging from Jabalpur, Madhya Pradesh, Kohli has carved a unique space in literature by weaving together tenderness, protest, and philosophy across poetry, prose, and cinema. Her work is not merely artistic expression—it is resistance, refuge, and a call for peace.
Post a Comment
»

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative   The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress. 
Post a Comment
»

Asbestos contamination in children’s products highlights global oversight gaps

By A Representative   A commentary published by the International Ban Asbestos Secretariat (IBAS) has drawn attention to the challenges governments face in responding effectively to global public-health risks. In an article written by Laurie Kazan-Allen and published on March 5, 2026, the author examines how the discovery of asbestos contamination in children’s play products has raised questions about regulatory oversight and international product safety. The article opens by reflecting on lessons from the COVID-19 pandemic, noting that governments in several countries were slow to respond to early warning signs of the crisis. Referring to the experience of the United Kingdom, the author writes that delays in implementing protective measures contributed to “232,112 recorded deaths and over a million people suffering from long Covid.” The commentary uses this example to illustrate what it describes as the dangers of underestimating emerging threats. Attention then turns...
Post a Comment
»

Aligning too closely with U.S., allies, India’s silence on IRIS Dena raises troubling questions

By Vidya Bhushan Rawat*  The reported sinking of the Iranian ship IRIS Dena in the Indian Ocean near Sri Lanka raises troubling questions about international norms and the credibility of the so-called rule-based order. If indeed the vessel was attacked by the American Navy while returning from a joint exercise in Visakhapatnam, it would represent a serious breach of trust and a violation of the principles that govern such cooperative engagements. Warships participating in these exercises are generally not armed for combat; they are meant to symbolize solidarity and friendship. The incident, therefore, is not only shocking but also deeply ironic.
Post a Comment
»

The kitchen as prison: A feminist elegy for domestic slavery

By Garima Srivastava* Kumar Ambuj stands as one of the most incisive voices in contemporary Hindi poetry. His work, stripped of ornamentation, speaks directly to the lived realities of India’s marginalized—women, the rural poor, and those crushed under invisible forms of violence. His celebrated poem “Women Who Cook” (Khānā Banātī Striyāṃ) is not merely about food preparation; it is a searing indictment of patriarchal domestic structures that reduce women’s existence to endless, unpaid labour.
Post a Comment
»

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.
59 comments
»

India’s foreign policy at crossroads: Cost of silence in the face of aggression

By Venkatesh Narayanan, Sandeep Pandey  The widely anticipated yet unprovoked attack on Iran on March 1 by the United States and Israel has drawn sharp criticism from several quarters around the world. Reports indicate that the strikes have resulted in significant civilian casualties, including 165 elementary school girls, 20 female volleyball players, and many other civilians. 
Post a Comment
»