Patna: The Bihar government on Friday approved a power subsidy package worth Rs 15,995 crore for the 2025–26 fiscal year, offering major relief to electricity consumers across the state under the Mukhya Mantri Vidyut Upbhokta Sahayta Yojana. The decision, taken at a cabinet meeting chaired by Chief Minister Nitish Kumar, reflects a 4% hike over the previous year’s allocation of Rs 15,343 crore.
Energy Minister Bijendra Prasad Yadav said the move is part of the state’s commitment to ensure affordable, high-quality, and uninterrupted electricity for all, especially rural and agricultural consumers. “This scheme is a live example of the government’s welfare approach. Consumers are shielded from rising electricity supply costs through targeted subsidies,” he said.
In a significant change, the state has abolished consumption slabs for rural domestic consumers, setting a minimum flat rate. Those consuming over 50 units will now pay 54 paise less per unit. Around 1.25 crore consumers are expected to benefit from this revision. Prepaid meter users will receive an additional concession of 25 paise per unit.
The agriculture sector, a key focus area, has been granted a subsidy of up to 92%, enabling power supply at just 55 paise per unit. Cold storage units will also be charged the same rate, potentially reducing food storage costs and making agricultural produce more affordable.
Revised rates under the scheme include:
- Rs 1.97 per unit for BPL Kutir Jyoti households
- Rs 2.45 for rural domestic consumers
- Rs 3.35 for rural commercial use
- Rs 4.12 for urban households
- Rs 6.00 for small-scale industries
- Rs 6.40 for heavy industries
The Bihar Electricity Regulatory Commission (BERC) has adopted a cost-based tariff system since 2017–18, with the state bridging the gap through annual subsidies.
Officials say the subsidy will stimulate inclusive growth by easing household costs and energising economic activity in both rural and urban regions.
