Madhya Pradesh Announces 93% Subsidy on Agricultural Pump Connections

Key Highlights

• Farmers will pay only Rs 2,250 for 3 HP and Rs 3,750 for 5 HP pumps.

• 10 HP agricultural pumps will cost only Rs 7,500 after subsidy.

• Over 1.07 crore domestic consumers will benefit from cheaper electricity.

• Smart meter users get a 20% discount from 9 AM to 5 PM.

• Green tariffs are reduced to promote renewable energy use.

The Madhya Pradesh government has announced a major relief for farmers and domestic electricity consumers. Under the new tariff plan, farmers will receive a 93% subsidy on electricity costs for agricultural pump connections ranging from 3 HP to 10 HP. Additionally, over one crore domestic consumers will benefit from cheap electricity under the Atal Griha Jyoti Yojana. The decision follows the revised electricity rates released by the Madhya Pradesh Electricity Regulatory Commission on March 29, 2025.

Also Read: MNREGA: Provision for Well Construction to Boost Irrigation in Rural Areas

Subsidy Details for Farmers

• The annual electricity bill for a 3 HP pump is set at Rs 30,730, but after a 93% subsidy, farmers will pay only Rs 2,250.

• For a 5 HP pump, the original cost is Rs 54,671, but farmers will pay only Rs 3,750.

• A 10 HP pump costs Rs 1,15,655 annually, but farmers will pay only Rs 7,500.

• The remaining amount will be covered by the state government.

• Around 37 lakh farmers in Madhya Pradesh will benefit from this scheme.

Subsidy for Domestic Consumers

• Consumers using up to 150 units of electricity will get subsidies under the Atal Griha Jyoti Yojana.

• The charge for the first 100 units will be only Rs 100, while the government will cover the remaining Rs 566.

• Around 1.07 crore domestic consumers will benefit from this subsidy.

Also Read: Madhya Pradesh Sets Charges for Temporary Pump Connection: Here's What Farmers Need to Know

Additional Tariff Updates

• The Electricity Regulatory Commission approved only a 3.46% tariff hike instead of the 7.52% requested by power companies.

• Households using up to 100 units will see a Rs 24 increase in bills, but this will be covered under the subsidy scheme.

• No meter rent or minimum billing charges will apply.

• Smart meter consumers with less than 10 kW load will get a 20% discount from 9 AM to 5 PM.

• High-pressure consumers will receive a 7.5% to 10% discount for nighttime electricity use.

• The green tariff has been reduced to encourage the use of renewable energy.

Instructions to Power Companies

The commission has instructed power companies to improve consumer services and create a research fund. The complete tariff order is available on the Electricity Regulatory Commission’s website (https://www.mperc.in/).

This initiative aims to make electricity more affordable for farmers and the general public while promoting sustainable energy consumption in the state.

Also Read: Govt Generates 4.85 Crore Farmer IDs, Digital Crop Survey to Begin in Kharif 2025

CMV360 Says

The Madhya Pradesh government's subsidy plan is a major relief for farmers and domestic consumers. By covering 93% of agricultural electricity costs and reducing bills for households, the scheme aims to ease financial burdens and boost economic growth while promoting the use of green energy in the state.