CHANDIGARH:Though at a meeting of the coordination committee, both the SAD and the BJP have arrived at a agreement to stop free power to the farm sector, impose octroi and collect abiana — a sort of tax — on the water supplied to farmers through canal network, a formal discussion will be held on this at the cabinet meeting on December 9.

Sources told that the financial condition of the state was failing day to day and there was no any alternative besides this decision.

The government has estimated to collect about Rs 1,350 crore annually by the implementation of this decision. and imposing octroi and levying abiana.Notably, The state will also save another Rs 700 crore due to this decision and crucially it will be eligible for various soft loans and grants from the central government .The farm sector to be charged as per the old formula that was stopped in August, 2006 when Capt Amarinder Singh, in the last few months of his government, announced free power to the farmers.

The farmers will be paying a fixed charge of Rs 60 per month for each bhp of the tubewell now it is not difficult for a farmer to pay the amount as they are earning between Rs 40,000 and Rs 45,000 per acre annually said a policy maker.

After imposing Octroi the state will charge about Rs 150 per acre annually from the farmers and the abiana of Rs 155 crore will be collected .