Indian State Government to Give Free Electricity?


The government of Bihar, a populous state in eastern India, has announced a major welfare initiative providing free electricity up to 125 units per month to all domestic households starting August 1, 2025. This new scheme is expected to benefit approximately 16.7 million families across the state and comes just months ahead of the upcoming state assembly elections scheduled for October-November 2025.


Bihar’s Chief Minister, Nitish Kumar, described the move as a step toward making electricity more affordable for all citizens, especially benefiting low-income and marginalized communities, but in reality, this is an election freebie targeting the upcoming lection. The free electricity allowance means that households will not be charged for consuming electricity up to the specified limit, which can cover much of a typical monthly household usage in the region.


Alongside the free electricity, the government has unveiled plans to install solar power plants either on rooftops or nearby public spaces over the next three years. For extremely poor families, the state will cover the entire cost of solar installation under the ongoing Kutir Jyoti Scheme, while other households will receive government support to adopt solar energy. This initiative aims to generate up to 10,000 megawatts of solar power, contributing to Bihar’s clean energy goals and reducing reliance on conventional electricity sources.


This announcement is part of a broader set of social welfare measures by the Bihar government, which recently increased social security pensions and promised employment opportunities for youth. It reflects a political strategy aligned with election preparations, as the government seeks to improve quality of life and energy access for its citizens.


Analysts note that while the scheme brings immediate relief and promotes renewable energy adoption, it also raises questions about the financial sustainability of such subsidies given Bihar’s limited fiscal capacity.

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