Subsidies are worldwide phenomenon, introduced for increasing the agricultural production. In India at present, Governments are providing subsidies on fertilizers, irrigation, electricity etc to facilitate the farmers. In this book, an attempt is made to analysis the subsidy of electricity in Punjab state of India during 1996-97 to 2008-09. This book reveals the meaning of subsidy, free electricity given to Punjab farmers, current status of electricity and the impact of free electricity on various aspects of economy.