📷 Image: Wikimedia Commons / Kundan3
Sarkari Yojana
Bihar CM urges income‑tax payers to forgo 125‑unit free electricity subsidy
✍️ The Economic Times
🗓 02 Nov 2026, 12:32 PM
👁 19
Chief Minister Nitish Kumar appealed to Bihar residents who pay income tax to surrender the 125‑unit electricity benefit, indicating the subsidy will not be extended to taxpayers.
Chief Minister Nitish Kumar addressed the state’s income‑tax‑paying residents, asking them to voluntarily give up the 125‑unit electricity benefit that has been provided as a subsidy. The CM said the move is intended to ensure that the free electricity scheme is reserved for those who do not fall under the income‑tax bracket, thereby targeting assistance more effectively.
He explained that the current policy, which offers a flat 125‑unit credit on electricity bills, was originally designed for low‑income households. However, many taxpayers have also been availing the benefit, prompting a review of eligibility criteria. By encouraging taxpayers to surrender the credit, the government aims to re‑allocate resources to the truly needy.
The appeal was made during a press briefing in Patna, where the CM also highlighted the state’s broader efforts to rationalise subsidies and improve fiscal discipline. No immediate deadline was announced for the surrender, and officials will likely set a timeline in the coming weeks.
The announcement has drawn mixed reactions, with some taxpayers welcoming the call for fairness, while others seek clarification on the process for relinquishing the benefit. The state electricity board is expected to issue detailed guidelines shortly.
He explained that the current policy, which offers a flat 125‑unit credit on electricity bills, was originally designed for low‑income households. However, many taxpayers have also been availing the benefit, prompting a review of eligibility criteria. By encouraging taxpayers to surrender the credit, the government aims to re‑allocate resources to the truly needy.
The appeal was made during a press briefing in Patna, where the CM also highlighted the state’s broader efforts to rationalise subsidies and improve fiscal discipline. No immediate deadline was announced for the surrender, and officials will likely set a timeline in the coming weeks.
The announcement has drawn mixed reactions, with some taxpayers welcoming the call for fairness, while others seek clarification on the process for relinquishing the benefit. The state electricity board is expected to issue detailed guidelines shortly.