Shimla, Sept 20,
The Himachal Pradesh government has revised its power subsidy structure, bringing significant changes for both domestic and industrial consumers. Effective from October 1, the state will discontinue the Rs 1 subsidy for industrial power consumers and introduce new tariffs for households consuming more than 300 units of electricity per month.
While domestic consumers using up to 300 units per month will continue to receive a subsidy ranging from Rs 1.83 to Rs 3.53 per unit, those consuming more than 300 units will no longer enjoy the Rs 1.03 subsidy. As a result, these high-end consumers will now pay Rs 6.25 per unit, up from Rs 5.22.
The move aims to save the state government approximately Rs 700 crore annually, allowing for accelerated development projects. Despite the subsidy cuts, government officials assured that electricity in Himachal Pradesh will remain cheaper than in neighboring states like Punjab, Haryana, and Uttarakhand.
For industrial consumers, the subsidy removal means that those requiring power above 66 KV will now pay between Rs 5.66 and Rs 6.06 per unit. However, the government has provided relief by reducing electricity tariffs across various sectors. Small industries have seen a tariff reduction from 11% to 3%, while medium industries will benefit from a reduction from 17% to 10.5%. Large industries, except for cement and stone crushers, will have their tariffs lowered from 19% to 16.5%.
Interestingly, the state government has opted not to lift free power for domestic consumers using less than 125 units per month, offering continued relief for smaller households. However, high-end consumers and large-scale industries will bear the brunt of the new power rates, while small shopkeepers remain unaffected by the changes. The new tariff structure will likely impact major commercial establishments such as hotels and malls.
With these adjustments, the Himachal Pradesh government seeks to strengthen the state’s economy while offering targeted relief to small industries, even as it tightens the financial burden on high-end consumers and larger businesses.
Empower Independent Journalism – Join Us Today!
Dear Reader,
We’re committed to unbiased, in-depth journalism that uncovers truth and gives voice to the unheard. To sustain our mission, we need your help. Your contribution, no matter the size, fuels our research, reporting, and impact.
Stand with us in preserving independent journalism’s integrity and transparency. Support free press, diverse perspectives, and informed democracy.
Click [here] to join and be part of this vital endeavour.
Thank you for valuing independent journalism.
Warmly,
Vishal Sarin, Editor
