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Hukkeri rural electricity society burdened by unpaid ₹245 crore rebate, ₹200 crore interest

October 3, 2025
Reading Time: 2 mins read
Hukkeri rural electricity society burdened by unpaid ₹245 crore rebate, ₹200 crore interest

The Hukkeri Rural Electricity Supply Cooperative Society is reeling under a financial load of ₹445 crore.

Across Karnataka, power supply is managed by HESCOM, BESCOM, MESCOM, JESCOM, and CESC. But in Hukkeri taluk, electricity has been distributed solely by the Hukkeri Rural Electricity Cooperative Society for the past 56 years.

The society’s role is to purchase electricity from supply companies and deliver it to households and farmers. Known for its efficiency, quality, and prompt service, it enjoys strong local trust.

Since 2015, the state government has failed to release concession dues, which have mounted to ₹245 crore. On this amount, HESCOM has levied ₹200 crore in interest. Despite repeated appeals to clear the rebate and waive interest, the demand has remained pending for nearly a decade.

While domestic consumption rebates are being paid, the pump set rebate is still pending, leaving farmers across the taluk waiting.

The society runs its own units for pole manufacturing, transformer repairs, regeneration, warehousing, line equipment, gyrod, wires, and accessories. It also operates 11 distribution centers, showcasing its self-reliance.

In the recent elections of the Sangh, a panel led by former MP Ramesh Katti and ex-minister A.B. Patil assumed charge, promising to rescue the cooperative from its financial crisis, raising public hopes.

Currently, the society has placed a proposal before the state government seeking payment of subsidies and waiver of interest.

The legacy
Only three electricity supply cooperative societies exist in India, one each in Andhra Pradesh, Telangana, and Karnataka. The sole one in Karnataka was set up at Hukkeri in 1969 by freedom fighter and cooperative leader Appanna Gowda Patil.

The society today services 1.47 lakh connections across Hukkeri, Chikkodi, and Belagavi taluks, covering homes, pump sets, businesses, and industries. With 97,000 shareholders and 402 employees, all farmer families, it remains a unique model of cooperative strength.

3.47 crore units used monthly
“The taluk consumes 3.47 crore units of electricity each month, costing around ₹22 crore. Power is purchased from HESCOM at ₹6.40 per unit and supplied at ₹5.80 for households, ₹7 for commercial, ₹4.50 for industries, and ₹7.46 for irrigation pump sets,” society officials stated.

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