In a significant move aimed at easing the financial burden on power consumers, the Bihar Cabinet has sanctioned a massive ₹15,995 crore subsidy under the “Mukhya Mantri Vidyut Upbhokta Sahayta Yojana” for the financial year 2025-26. The subsidy, which is ₹652 crore more than last year, aims to make electricity more affordable for a wide spectrum of consumers across the state.
Subsidy Enhanced for 2025-26
Compared to ₹15,343 crore sanctioned in 2024-25, this year’s subsidy marks a 4% increase. The annual financial assistance is provided by the state government to offset the power tariff rates determined by the Bihar Electricity Regulatory Commission (BERC), which has been using a cost-based tariff model since 2017-18. The subsidy acts as a cushion for consumers from the rising costs associated with power generation, transmission, and distribution.
Benefits for Rural Domestic Consumers
In a major decision, the government has abolished the slab system for domestic consumers in rural areas. Now, these consumers will be charged a minimum rate per unit regardless of their usage slab. Furthermore, those consuming more than 50 units will benefit from a reduced rate of 54 paise per unit, impacting around 1.25 crore rural households positively.
Additionally, consumers using pre-paid meters will receive a 25 paise per unit concession, further promoting the use of efficient energy systems and smart metering.
Big Boost for Agriculture and Cold Storage Units
Acknowledging the vital role of agriculture in the state’s economy, the Bihar government has extended substantial subsidies to the agricultural sector. Farmers and agricultural consumers will be charged only 55 paise per unit, thanks to a whopping 92% subsidy from the government.
Cold storage units, crucial for preserving agricultural produce, will also be supplied power at the agricultural rate of 55 paise per unit. This move is expected to lower the cost of storage, thereby reducing the market prices of agricultural goods and making them more affordable for the general public.
Revised Electricity Rates for Different Categories
The minimum per unit electricity rates for various consumer categories under the new subsidy scheme are as follows:
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BPL (Kutir Jyoti) families – ₹1.97 per unit
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Rural domestic consumers – ₹2.45 per unit
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Rural commercial users – ₹3.35 per unit
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Urban domestic consumers – ₹4.12 per unit
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Har Ghar Nal Ka Jal scheme – ₹2.45 per unit
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Small-scale industries – ₹6.00 per unit
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Heavy industries – ₹6.40 per unit
These subsidized rates are expected to provide significant financial relief to both residential and commercial consumers while supporting the state’s industrial growth.
Minister's Remarks: A Welfare-Oriented Approach
Speaking at the press briefing, Bihar’s Energy Minister Bijendra Prasad Yadav lauded Chief Minister Nitish Kumar for his commitment to delivering affordable, reliable, and high-quality electricity to every household in the state.
“The cost of electricity is steadily increasing due to the rise in generation, transmission, and distribution expenses. However, the government ensures that the burden is not transferred to the consumers by offering a generous subsidy,” the Minister stated.
He emphasized that the “Mukhya Mantri Vidyut Upbhokta Sahayta Yojana” stands as a testament to the government’s dedication to welfare and inclusive growth, benefiting crores of people across both urban and rural regions.
A Step Towards Economic Growth
The government reiterated that the move is aligned with its broader vision of promoting economic development through electrification. By ensuring affordable and uninterrupted power supply, the state aims to foster better living standards, improve agricultural productivity, boost industrial activity, and create a more conducive environment for investment and employment.
The scheme is expected to further empower the rural population, support the urban middle class, and provide a significant push to micro, small, and medium enterprises (MSMEs) that depend heavily on cost-effective energy.
The Bihar government's decision to allocate ₹15,995 crore as power subsidy under the “Mukhya Mantri Vidyut Upbhokta Sahayta Yojana” is a progressive and people-centric initiative. It not only protects consumers from rising electricity costs but also reinforces the state's commitment to inclusive development, sustainable energy access, and economic resilience.
As the state continues to invest in power reforms and infrastructure, such welfare-oriented measures will likely play a crucial role in shaping a more equitable and empowered Bihar.