With the Bihar Assembly Elections 2025 fast approaching, Chief Minister Nitish Kumar appears to be shifting focus toward voter-centric welfare schemes, aiming to consolidate support across key demographics. After announcing measures like women’s reservation in jobs and an increase in pension schemes, the Bihar government is now preparing to introduce a free electricity scheme, offering up to 100 units of electricity free of charge to all households in the state.

According to official sources, the Finance Department have to approve the proposal for this 100-unit free power scheme, and after that, it will get final approval from the state cabinet. Once cleared, this initiative could impact millions of residents and potentially reshape the upcoming electoral narrative in the state.

Bihar Free Electricity Scheme 2025: What’s in the Proposal?

The proposed Bihar Free Electricity Scheme is aimed at offering a monthly subsidy of up to 100 electricity units per household, ensuring that low-income and middle-class families are relieved from paying electricity bills for basic usage.

Key Highlights of the Scheme:

• All residential electricity consumers will be eligible

• 100 units per month to be provided free of cost

• Users consuming more than 100 units will be charged only for the excess units

• The scheme will apply to both urban and rural households

This means if a consumer uses 95 units in a month, they will pay ₹0. However, if the usage crosses 100 units—for example, 120 units—they will be charged only for the 20 extra units, as per existing tariff slabs.

Current Power Tariffs in Bihar

As of now, the power tariff in urban Bihar follows this structure:

• First 50 units: ₹7.57 per unit

• Next slab: ₹7.96 per unit

These charges often put a financial strain on low-income families, especially in regions where electricity consumption is rising due to the growing use of appliances and digital devices.

By covering the initial 100 units, the state hopes to significantly reduce electricity bills for nearly 90% of domestic users, who generally fall within or just above this consumption range.

Economic Implications and Funding

The Bihar government currently subsidises power in various ways, but offering free electricity across the board—especially up to 100 units—would involve an estimated expenditure running into thousands of crores annually.

However, the state believes that this strategic welfare move will yield long-term benefits in terms of public satisfaction, social equity, and electoral support, especially in the semi-urban and rural belts where economic stress is more acute.

Political Timing: Welfare Strategy Ahead of Bihar Assembly Elections 2025

The timing of this announcement is politically significant. With Bihar Assembly elections expected in late 2025 or early 2026, CM Nitish Kumar and his government are rolling out a series of public welfare policies aimed at:

• Women voters

• Elderly citizens

• Rural and semi-urban households

• Economically weaker sections

Recently, the government also passed a landmark women’s job reservation bill and increased pension allowances under various social welfare schemes. The free power scheme is seen as another move in the same direction—bridging basic needs with electoral strategy.

Political analysts believe that such targeted schemes can swing voter sentiments in closely contested regions, particularly if rival parties fail to propose similar welfare initiatives.

How This Compares with Other States

Bihar is not the first state to offer free electricity as part of a welfare model. States like:

• Delhi (up to 200 units free)

• Punjab (300 units free per household)

• Rajasthan and Tamil Nadu (limited free units and subsidies)

have already implemented similar policies, often yielding favourable responses from the electorate.

However, Bihar’s proposal stands out due to its scale and reach, covering almost every household, regardless of economic status, though high-usage consumers will pay for additional units.

Who Will Benefit the Most?

The primary beneficiaries of this scheme include:

• Low-income families living in urban slums and rural villages

• Daily wage workers and farmers

• Women-led households and elderly residents

• Students and youth in hostels or rented accommodations

The plan is expected to benefit millions of families, many of whom struggle to pay utility bills on time due to fluctuating incomes.

Challenges and Criticisms

While the scheme is likely to be welcomed by the public, there are several concerns:

1. Fiscal sustainability: Critics argue that such populist schemes may strain Bihar’s budget in the long run, affecting investment in infrastructure and education.

2. Power theft risks: Free electricity has, in some states, led to increased misuse or theft of power.

Still, the government claims that smart metering, digitised billing, and strict monitoring will prevent misuse and ensure fair distribution.

Expert View: A Calculated Political Gamble

Policy experts describe this as a “socially impactful, but politically timed” move. While it addresses a real issue—rising power bills and inflation—it also neatly aligns with electoral goals.

“Free electricity for up to 100 units may not just be about power—it’s about empowerment,” said a senior political analyst in Patna. “This scheme could help Nitish Kumar regain ground in voter segments that have recently leaned toward the opposition.”

As Bihar prepares for the next electoral showdown, the 100-unit free electricity scheme could emerge as a key talking point, both as a relief policy for common people and as a campaign promise that demonstrates Nitish Kumar’s intent to prioritise welfare over rhetoric.

Whether this move will translate into electoral gains remains to be seen, but for now, it has certainly sparked debate, caught public attention, and shifted the policy narrative in Bihar.