Wed Feb 25 19:47:19 UTC 2026: # Haryana’s Electricity Woes: Former Finance Minister Demands Tariff Reversal Amid Debt Concerns

The Story:
Former Haryana Finance Minister and Indian National Lok Dal (INLD) national patron Sampat Singh appeared before the State Electricity Regulatory Commission on Wednesday, February 26, 2026, demanding the immediate withdrawal of fixed charges, increased electricity tariffs, and fuel surcharges. Singh argued that despite the implementation of the Central government’s UDAY scheme in 2015, which saw the State government take over a ₹25,950 crore loan from power distribution companies (discoms), the utilities have once again fallen into a cycle of debt and losses.

Key Points:

  • Sampat Singh, former Haryana Finance Minister, protested against current electricity tariffs.
  • He demanded the withdrawal of fixed charges, increased tariffs, and fuel surcharges.
  • The UDAY scheme, implemented in 2015, aimed to alleviate discom debt.
  • Under UDAY, the Haryana government took over ₹25,950 crore of discom debt.
  • Despite UDAY, discoms in Haryana are reportedly facing debt and losses again.

Critical Analysis:

The news article highlights a recurring problem in Haryana’s power sector – the inability to maintain financial stability despite government intervention. The UDAY scheme, intended to resolve the debt issues of discoms, appears to have provided only temporary relief. This suggests underlying structural problems within the electricity distribution system, such as inefficiencies in operations, high transmission and distribution losses, or inadequate tariff structures, are persistent issues. The timing of Sampat Singh’s protest, given the recent news of a ₹590-crore IDFC First Bank case in Haryana, coupled with rising debt and welfare expenditure, may indicate an overall fiscal stress in the state, making electricity tariff hikes a particularly sensitive issue.

Key Takeaways:

  • Haryana’s power distribution companies are facing recurring debt issues despite the UDAY scheme.
  • The UDAY scheme’s effectiveness in Haryana is questionable.
  • Electricity tariffs are a politically sensitive issue in Haryana, especially amidst broader economic concerns.
  • There may be underlying structural issues in Haryana’s power sector contributing to the financial instability of discoms.

Impact Analysis:

The continued financial distress of Haryana’s discoms has several potential long-term implications:

  • Increased burden on taxpayers: The government may need to continually bail out the discoms, diverting funds from other essential sectors like education and healthcare.
  • Reduced investment in infrastructure: Financially weak discoms are less likely to invest in upgrading infrastructure, leading to unreliable power supply and increased losses.
  • Hindered economic growth: Unreliable power supply can deter businesses from investing in Haryana, slowing down economic growth.
  • Political instability: Public dissatisfaction with high electricity tariffs and unreliable power supply can lead to social unrest and political instability.
  • Compromised welfare schemes: The news article, when read in conjunction with the news of the mid-day meal scheme, indicates that the state is potentially having to make increasingly difficult decisions in order to manage it’s finances, which may lead to reduced funding for welfare schemes.

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