In a populist move, the Congress government in Haryana on Friday announced to waive off Rs 1600 crore outstanding power arrears of farmers and rural consumers.

However, it did not clearly spell out measures the government will adopt to cover the deficit.

After announcing in the State Assembly in Chandigarh the decision of his three-month-old government, which enjoys a two-third majority in the House, Chief Minister Bhupinder Singh Hooda told reporters that the state government had taken a 'historic decision' and blamed the previous Indian National Lok Dal regime of misleading the farming community into not paying the bills by promising them free power.

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Though the present state government enjoys a good reputation among the farming community, many Congress leaders in Chandigarh feel the move will give a further boost to the party's image.

Senior Congress leader and president of the Haryana Krishak Samaj Shamsher Singh Surjewala welcomed the government's move and said it would give a major relief to the farmers and rural consumers.

State Bharatiya Kisan Union chief Ghasi Ram Nain who led the farmers' agitation in 2002 and against whom the INLD regime had slapped a sedition case, also welcomed the government's announcement, saying it will help the already suffering farming community.