Haryana Proposes New Power Utility to Boost Agricultural Electricity Supply
In a significant move to enhance rural infrastructure, Haryana is set to overhaul its electricity distribution system with the creation of a third power utility, named Haryana Agri Discom. This initiative, announced by Chief Minister and Finance Minister Nayab Singh Saini during the 2026–27 budget presentation in the assembly on Monday, aims to ensure uninterrupted and reliable power supply specifically for farmers across the state.
Current Power Distribution Landscape
Currently, Haryana's electricity supply is managed by two utilities: Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam. These entities serve a diverse range of consumers, including domestic, commercial, industrial, and agricultural users, through a network of 14,391 feeders. Historical data reveals substantial growth in agricultural connections, with 1,89,978 tubewell connections released between 2004–05 and 2014–15, followed by an additional 2,92,990 connections from 2015–16 to December 2025.
Focus on Agricultural Feeders and Consumers
The newly proposed Haryana Agri Discom will exclusively cater to all 5,084 agricultural feeders and approximately 7.12 lakh farm consumers. Chief Minister Saini emphasized that the primary objective is to facilitate faster release of tubewell connections and provide dependable, uninterrupted power to farmers, which is expected to contribute to improved agricultural incomes.
Officials explained that consolidating all agricultural feeders under a single system will enable more focused planning and efficient grievance redressal. This specialized approach is anticipated to reduce delays in issuing new connections, accelerate transformer replacements, and enhance emergency response capabilities in rural areas.
Benefits of a Specialized Utility
A senior official highlighted that with a dedicated workforce and infrastructure, services under the new model are likely to be faster compared to the existing district-wise distribution framework. This initiative also aims to separate agricultural electricity demand from domestic and industrial loads, creating a more stable and efficient supply network to support the state's rural economy.
Subsidy Structure and Financial Implications
Farmers in Haryana currently receive power at heavily subsidized rates. Those with metered tubewell connections pay only 10 paise per unit, while the actual supply cost to agricultural consumers is approximately Rs 7.35 per unit. To bridge this gap, the state reimburses discoms roughly Rs 7.25 per unit.
For the 2024–25 fiscal year, Haryana is estimated to pay around Rs 6,718 crore in subsidies to compensate the two existing utilities for revenue losses from agricultural supply. This subsidy remains one of the largest components of the state's power sector expenditure, reflecting Haryana's long-standing policy of providing substantial support to farmers through near-free electricity.
The establishment of Haryana Agri Discom represents a strategic step towards optimizing power distribution, with a clear focus on enhancing agricultural productivity and rural development in the region.
