The Maharashtra government certainly did not expect this when it announced sops for farmers ahead of the assembly election.

It says it cannot pay the Rs 395 crore subsidy needed to supply power free to 24 lakh farmers in Maharashtra.

This has come as a blow to the Maharashtra State Electricity Board, which is not being allowed to hike tariff or collect dues from farmers to meet the expenditure.

When the government made the free power proposal, the Maharashtra Electricity Regulatory Commission asked it to pay compensation of Rs 395 crore to MSEB to make up for its losses.

However, the government says it is lacks funds to do so.

According to MSEB, the amount receivable from the government is Rs 599 crore, which includes Rs 395 as compensation for this quarter.