Karnataka may need Rs 1,500 crore more for electricity: Siddaramaiah

Chief minister Siddaramaiah announced on Monday that the state may need an additional Rs 1,500 crore to meet its growing electricity demand. Speaking after a meeting with energy department officials, he said power consumption has increased 43% year-on-year in 2023.

Additional funds are needed because he acquiesced to the farmers’ demand of asking power companies to supply electricity to farmers for a maximum of seven hours instead of five, the CM said. Karnataka would require about 600 MW per hour or about 14 million units per day, he said.

The additional funds will be obtained by reallocations, savings and grants, he said, without disclosing the exact nature of the reallocations.


“Agriculture related power consumption has gone up in the range of 55% to 119%. Other sectors have seen a power consumption rise of 9% to 14%,” said the CM.

In October, the department recorded a power demand of 15,978 MW, he said.

This unprecedented increase was due to economic recovery after the Covid-19 pandemic and lack of rain coupled with higher use of irrigation pump sets in farms. This year, Karnataka received its lowest recorded monsoon rainfall since 1973, forcing it to declare 195 out of its 236 taluks as drought hit.

Siddaramaiah said orders have been issued to stop electricity supply to other states and start procurement from other states. After the last review meeting, the state began purchasing power from Uttar Pradesh, Himachal Pradesh and Punjab, which is helping in bringing the power distribution back to normal, he said, adding, “Power generation in Raichur and Ballari thermal plants has also increased.”

Veteran BJP leader BS Yediyurappa slammed the government for the power shortage crisis. “Industries have come to the point of closure due to power blackouts. On the other hand, they have increased the price of electricity,” the former CM said.

In August, home minister G Parameshwara had announced that the state may have to resort to load-shedding in some parts of the state to meet the demand for power. The government is also burdened by Griha Jyoti. the Congress’ pre-poll promise of giving up to 200 units of electricity per month for free per household. The scheme, launched last month, will cost the state Rs 13,910 crore a year.

In June this year, within a month of assuming office, the government had increased electricity rates by Rs 2.89 per unit, facing widespread outrage from industrialists across the state. The power tariff hike was widely perceived as a means to fund the electoral promise. The CM had, however, blamed the Karnataka Electricity Regulatory Commission and said the regulator had decided to increase the charges before the Congress came to power.