Under Gruha Jyothi scheme, free electricity is provided for domestic consumption up to 200 units, irrespective of the beneficiary’s financial status

The Forum for Good Governance (FGG) has urged the Telangana Government to restrict the "Gruha Jyothi" free power scheme to economically weaker sections, citing financial strain on the state.

In a representation to Chief Minister A Revanth Reddy, Forum president M. Padmanabha Reddy said the scheme, expected to benefit nearly 40 lakh households, would cost about Rs.5,500 crore annually. He warned that blanket free power was 'bad economics', worsening DISCOM finances and diverting funds from critical sectors like education, healthcare and employment. Under Gruha Jyothi scheme, free electricity is provided for domestic consumption up to 200 units, irrespective of the beneficiary’s financial status. He requested the Chief Minister to revisit the Gruha Jyothi scheme and prescribe clear eligibility criteria, ensuring that only the poor and genuinely needy receive its benefit.

According to FGG, when Telangana State was formed in June 2014, it was producing only about 50% of its power requirement. To improve power availability, the Government proposed new thermal power projects such as Bhadradri, Yadadri and Kothagudem Stage-VII. However, due to various reasons, these projects could not be completed on time. Meanwhile, the Government began purchasing power from other states and private agencies, creating an impression that Telangana is self-sufficient in power. Free electricity was provided to 25 lakh agricultural pump sets, which led to a major shift in cropping patterns from millets, oilseeds and vegetables to paddy. Due to free power supply, the financial condition of DISCOMs has deteriorated drastically, pushing them into heavy debt.