Ahead of the Bihar elections, Chief Minister Nitish Kumar on Thursday (July 17) announced that 125 units of electricity will be provided free of cost to eligible households. The scheme is expected to benefit about 1.67 crore families across the state. Starting from August 1, 2025, domestic consumers in the state will get up to 125 units of electricity free of cost. This benefit will be reflected in the electricity bill for the month of July.
It is worth noting that under the current Kutir Jyoti Yojana, rural beneficiaries receive electricity at Rs 1.97 per unit, while other domestic users in rural areas pay Rs 2.52 per unit. In urban areas, the standard rate is Rs 7.57 per unit, but government subsidies bring it down to Rs 4.52 per unit.
Govt plans to install solar power systems
In an X post, the Chief Minister also announced the state government's plans to install solar power systems either on rooftops or in public areas over the next three years.
"We have been providing electricity to everyone at affordable rates from the very beginning. Now we have decided that from August 1, 2025, that is, from the July bill itself, all domestic consumers in the state will not have to pay any money for electricity up to 125 units. This will benefit a total of 1.67 crore families in the state. We have also decided that in the next three years, with the consent of all these domestic consumers, solar power plants will be installed on their rooftops or at nearby public places to provide benefits," said Kumar.
He further said that under the Kutir Jyoti scheme, for extremely poor families, the state government will bear the entire cost of installing solar power plants, and for the rest, the government will provide appropriate support. "This means domestic consumers will no longer have to bear any cost for electricity up to 125 units, and at the same time, it is estimated that within the next three years, up to 10,000 megawatts of solar energy will be available in the state," he added.
Will the free electricity scheme impact elections?
Assembly elections are scheduled in Bihar at the end of 2025, and the free electricity scheme announced by Nitish Kumar's party, JDU, in alliance with the NDA, could turn out to be a game-changer. In a state like Bihar, where electricity bills are a significant burden for many households, the provision of 125 units of free electricity could benefit families in both rural and urban areas. The scheme is expected to especially help poor and middle-class households, potentially boosting public support for the Nitish-led government.
Bihar Assembly Elections 2025
It is pertinent to mention that the Legislative Assembly election for all 243 constituencies in Bihar is scheduled to be held in October or November 2025. The previous assembly elections were held in October–November 2020. After the election, the National Democratic Alliance formed the state government, with Nitish Kumar becoming Chief Minister. Later, in August 2022, Nitish Kumar-led JD(U) snapped ties with the NDA and formed the government with RJD-led Mahagathbandhan. Again, in January 2024, Nitish Kumar-led JD(U) snapped ties with RJD-led Mahagathbandhan and again formed the government with the BJP-led NDA.
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