Karnataka Considers PPP Model for Gram Panchayats to Generate Renewable Energy
In an effort to tackle mounting unpaid power bills, the Rural Development and Panchayat Raj (RDPR) Department of Karnataka is exploring the possibility of Gram Panchayats (GPs) generating their own electricity through public-private partnership (PPP) models. RDPR Minister Priyank Kharge, along with his additional chief secretary Anjum Parwez and officials from the Gulbarga Electricity Supply Company Ltd (Gescom), recently discussed the feasibility of this idea.
The initiative aims to enhance energy self-sufficiency for local governing bodies, reduce reliance on external power sources, and promote sustainable development in rural communities. “By harnessing renewable energy, Gram Panchayats can lower their electricity costs, reduce dependency on external suppliers, and contribute to a greener future,” Priyank stated on social media platform X.
Karnataka has a total of 5,949 Gram Panchayats, and the government is optimistic that using renewable energy sources such as solar power could substantially benefit these rural local bodies. The department is examining potential financial models, implementation strategies, and long-term benefits for rural areas.
In his 2025-26 Budget, Chief Minister Siddaramaiah also announced plans for the establishment of solar micro-grids under the PPP model to alleviate the financial burden of rising electricity costs on Gram Panchayats.
Speaking about the state’s power sector, Priyank acknowledged that various government departments owe over ₹8,690 crore to electricity supply companies (Escoms), with his own department responsible for more than half of the amount. “Rather than seeking waivers for these dues, we’re focusing on monetizing existing resources for renewable energy,” he explained.
Minister Priyank also highlighted the potential of using barren or infertile lands owned by the Panchayats for generating solar power. “By identifying land and attracting private players, we can tap into union government subsidies to create solar power plants, where 2.8 to 3 acres of land could generate 1 MW of electricity.”
This initiative promises to be a step forward in reducing the financial burden on Panchayats while contributing to the state’s renewable energy goals.
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