Tamil Nadu Power Corporation’s New Policy Sparks Outrage Among Farmers

 Chennai, April 12, 2025 – A recent directive from the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has ignited controversy by barring farmers with off-grid solar-powered pump sets from accessing free electricity services for agricultural activities. The move, outlined in a memorandum, has drawn sharp criticism for undermining the state’s long-standing commitment to supporting farmers through free power, a policy initiated in 1989-90 by then-Chief Minister M. Karunanidhi.

Since 2021, the Tamil Nadu government has provided 1.69 lakh free electricity connections to farmers, yet approximately 3 lakh remain on a waiting list, some for as long as a decade. In the interim, many farmers have independently installed off-grid solar pump sets—often with government subsidies—or resorted to diesel-powered alternatives to sustain irrigation. However, TNPDCL’s new policy mandates that farmers with such solar systems are ineligible for the free LT-IV agricultural service. Instead, they must apply under the LT-IIIA(1) category, designated for cottage and micro-industries, which carries a tariff of ₹4.8 per unit up to 500 units and ₹6.95 per unit thereafter, plus fixed charges of ₹150 per kilowatt of connected load. Applicants must also sign an undertaking permanently forgoing free electricity eligibility.

The directive has faced strong opposition from experts and farmer representatives. P. Muthusamy, former director of the Tamil Nadu Electricity Regulatory Commission (TNERC), labeled the memorandum “grossly wrong” on multiple fronts. Citing Section 43 of the Electricity Act 2003, he argued that TNPDCL lacks the authority to deny agricultural service connections. “TNERC too can decide on the periodicity for providing the agricultural supply but cannot deny it altogether,” Muthusamy stated. He further criticized the policy for penalizing proactive farmers, noting, “A farmer cannot just stop farming and wait for many years just to get supply from TNPDCL. So, he opts for an off-grid solar pump set or oil-engine based pump set. So with this memorandum, TNPDCL has done a great injustice to the farmers of the state.”

Muthusamy also highlighted that the policy prevents farmers from converting existing LT-IIIA(1) connections to free supply upon gaining seniority, calling it “another blow to farmers” and a violation of TNERC’s tariff orders. “TNPDCL cannot take such a decision arbitrarily without the approval of TNERC,” he asserted.

P. Shanmugam, president of the Tamil Nadu Farmers Association and a CPI(M) leader, condemned the order for fostering inequality. “The state government’s policy is to provide free power to farmers. But now making some farmers ineligible for free power citing investments they made on their own will go against the vision,” he said. Shanmugam emphasized the financial burdens farmers face, noting, “The farmers would have either bought a loan or pledged their belongings to install the existing pump sets or pay the bills through their nose. The state should reconsider it as it has promised another 50,000 free services this year.”

Tamil Nadu currently supports 23.56 lakh agricultural service connections with a connected load of 1.8 crore, facilitating irrigation across the state. The 2025 agricultural budget allocated ₹7,280 crore to Tangedco, the state-owned distribution company, to sustain the free power scheme, equating to roughly ₹30,000 per connection annually. The new policy, however, threatens to disrupt this framework, raising questions about equity and access for farmers who have invested in sustainable alternatives.

As criticism mounts, calls are growing for the state government to review the directive and align it with its commitment to uplifting farming communities. The controversy underscores the delicate balance between modernizing agricultural infrastructure and preserving equitable access to essential resources.