Power subsidy to industry in Punjab, which costs the state Rs 1,455.18 crore annually, favours the big industrialists as the free farm power benefits the big farmers. A big industrialist’s benefit is almost 100 times than that of the small industrialist from the government’s subsidy.
While every small industrialist gets on average Rs 13,800 per year on account of subsidy from the government, a medium industrialist gets Rs 55,600 and a large industrialist gets Rs 13,70,800 from the government. The issue of subsidy that burns a hole in the pocket of the state has come into focus after a group of experts led by noted economist Montek Singh Ahluwalia decried the subsidy.
