The government is spending thousands of crores of rupees on the scheme of providing 125 units of free electricity every month in Bihar. Chief Minister Samrat Chaudhary has now appealed to financially affluent people and income tax payers to voluntarily give up the benefit of this facility. After all, why did the government make this appeal and is this going to stop the free electricity scheme?
Tezzbuzz Desk – A new discussion has started in Bihar regarding 125 units free electricity scheme. Chief Minister Samrat Chaudhary has urged financially capable families and people paying income tax to voluntarily give up the free electricity subsidy. According to the Chief Minister, the state government is spending about Rs 23 thousand crore every year on electricity subsidy. In such a situation, those who are able to pay their electricity bills can avail of this facility and contribute to the development of the state.
Samrat Chaudhary made this appeal while addressing the Patliputra National Youth Parliament-2.0 organized in Patna. He said that the government is providing the benefit of free electricity up to 125 units to domestic consumers of all economic classes. According to the Chief Minister, the government is spending around Rs 8,000 to Rs 10,000 per family annually on electricity subsidy. If affluent families voluntarily give up this facility, the government resources saved can be used to improve education and other public facilities.
When was the 125 units free electricity scheme started?
In Bihar, the scheme to provide up to 125 units of free electricity every month to domestic consumers was started by the Nitish Kumar led government. The proposal was approved by the state cabinet in July 2025 and was implemented from August 2025. Under the scheme, a provision was made to give full subsidy to eligible domestic consumers on electricity consumption up to 125 units every month.
The objective of this scheme is to provide relief to domestic consumers from electricity expenses. Its benefits are being given to consumers of different economic classes. The government has also linked the free electricity facility with initiatives to promote solar energy.
Provision of Rs 23,165 crore on electricity subsidy
The financial expenditure of Bihar government can be estimated from the budget provision made for the financial year 2026-27. According to available information, a total subsidy of Rs 23,165 crore has been approved under the Chief Minister Electricity Consumer Assistance Scheme.
In this, a provision of Rs 18,005 crore has been made for National Thermal Power Corporation and Rs 5,160 crore for Bihar State Power Holding Company Limited. This amount has been approved for the period from April 2026 to March 2027. The Chief Minister has also said that about Rs 23 thousand crores will be spent annually on electricity subsidy.
The main objective of Chief Minister Samrat Chaudhary's appeal is to motivate those families, who are financially capable and can easily pay the electricity bill, to voluntarily give up the subsidy. The government argues that if such consumers do not take advantage of free electricity, there may be more scope for spending government resources on education and other essential public facilities.
However, it is important to clarify that at present the Chief Minister has not announced the closure of the free electricity scheme or compulsorily excluding income tax payers from the scheme. His appeal is to affluent families and income tax payers to voluntarily give up subsidies.
Will 125 units free electricity scheme be stopped?
At present, there has been no announcement of closure of 125 units free electricity scheme. The Chief Minister's appeal should not be seen as a decision to end the scheme. Under the current system, domestic consumers are being given the benefit of free electricity up to 125 units.
Now it has to be seen how many financially capable consumers voluntarily give up the subsidy after the Chief Minister's appeal. How much this will save the government and how that amount will be used in education or other public facilities will depend on the future situation. At present, this appeal has become a subject of debate in Bihar regarding the huge financial burden of electricity subsidy and the use of government resources.