Gujarat government to write off electricity bills worth Rs 6.5 billion

The Bharatiya Janata Party (BJP)-led Gujarat government has announced to write off electricity bills of connection holders in rural areas to the tune of Rs 6.5 billion.

Gujarat Energy Minister Saurabh Patel informed that 622,000 people would benefit from the move.

"We are announcing a one-time settlement scheme. Today, electricity connection of around 6.22 lakh consumers has been cut; they can deposit Rs 500 under a one-time settlement scheme and get back their connection. In urban areas both BPL and non-BPL families will be able to avail this benefit, industries will not be given this benefit. The government will have to bear a burden of Rs 625 crore," the minister said.

The announcement came a day after the Congress party has announced loan waivers for farmers in Madhya Pradesh and Chhattisgarh within hours of forming the government. This move by the Congress government in both states has put the BJP governments at the Centre and states under pressure ahead of the Lok Sabha elections next year.