OFFSHOOTS OF KARNATAKA'S FARM POWER SUBSIDY REGIME

Farm power subsidy figures prominently on the agenda of almost every state government of the country. By includingthe farm power subsidy regime in their agenda, the states seem to have erroneously convinced themselves that they hadcontributed to the cause of agriculture and agriculturists. If their conviction is right, by now the problems faced by ouragriculturists must have been solved many times over. But the problems have not been solved yet although ouragriculture is characterized by small and fragmented landholdings. The reasons are not far to seek. The policy targetedmarginal farmers and small farmers but big farmers somehow managed to gain a toehold, thereby reducing the pieearmarked for the marginal and small farmers. The regime rendered it easier for the political and permanent executivesto evade responsibilities, adding to the woes of the ESCOMS or electricity supply companies. To make matters worse,government failed to release subventions to the Escoms promptly. Upon inquiry, the researcher was convinced that thefarmer-consumers would not oppose a pro rata levy on the power consumed , provided quality power was supplied tothem uninterruptedly. This would also minimize the opportunities available to vested interests to pilfer power. It is truethat the farm power subsidy regime provides scope to the political and permanent executives to evade responsibilities,adding to the incompetence of Escoms. But there is a way out -- the state government, utility companies and farmer-usersshould devise a set of politically and financially feasible and socially acceptable alternatives to address the problem. Awin-win situation will emerge as a result.