Financial Times FT.com

Farmers fail to reap poll rewards in rural Indian state

By Edward Luce

Published: December 10 2004 02:00 | Last updated: December 10 2004 02:00

Y.S.R. Reddy, the chief minister of Andhra Pradesh, one of India's largest states, inflicted a heavy defeat last May on his predecessor, Chadrababu Naidu, on a promise of free electricity to farmers. Seven months later, Mr Reddy is already searching for ways to undo what was widely seen as a rash promise.

At his office in Hyderabad, one of India's leading software magnets, Mr Reddy concedes that most of the free power is captured by wealthy farmers including the chief minister himself, who owns a large estate in southern Andhra Pradesh. Up to two-thirds of rural households in the state have no connections, although many tap illegally into power lines.

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